Cohu Inc (COHU) has disclosed a new risk, in the Debt & Financing category.
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Provisions in the indentures governing Cohu Inc’s Notes could pose a significant risk by potentially delaying or discouraging a takeover. These provisions allow noteholders to demand repurchase of their Notes for cash if a takeover is deemed a fundamental change, and may require an increase in the conversion rate for a make-whole fundamental change. Such obligations could elevate the cost of acquisition or deter third-party interest, even if the transaction is perceived as beneficial by noteholders or shareholders. This could ultimately protect incumbent management but may also limit strategic opportunities for the company.
Overall, Wall Street has a Strong Buy consensus rating on COHU stock based on 4 Buys and 1 Hold.
To learn more about Cohu Inc’s risk factors, click here.