Vtel to Buy Compression Labs in Stock Deal
Times Staff and Wire Reports
Vtel Corp. said it has agreed to buy Compression Labs Inc. for about $80 million in stock. Both companies make videoconferencing products. Under the agreement, each Compression common share would be exchanged for 0.46 Vtel common share. That values San Jose-based Compression Labs at $4.6575 a share, based on Vtel’s closing price Monday. Compression Labs’ stock rose 6 cents to close at $4.31 cents, while Vtel shares fell 62.5 cents to close at $9.50, both on Nasdaq. Austin, Texas-based Vtel said it expects to issue about 8.4 million new common shares in the transaction.
