PiperJaffray: The privatization of Shanda network is feasible

Sina Science and technology news Beijing time of October 17, the United States investment Bank Jaffray (Piper Jaffray) today issued an investment report, awarded the Royal Network (micro-BO) (Nasdaq:snda) shares "neutral" rating, the target price set to 34 U.S. dollars.　　The following is a summary of the contents of the report: Shanda Network announced today that the company's board of Directors has received the initial non-binding proposal submitted by CEO Chen to buy Chen, Chen wife Luo Qianqian, and Chen Tianqiao's brother Danian has not yet held all the remaining circulating shares of the royal network. We believe that a 41.35-dollar offer is attractive because the offer is 24% higher than the Friday closing price of the grand Web, and the 34-dollar target for the Grand network is 22%. From a long-term perspective, we think that Shanda network is more suitable as a private enterprise, because compared with institutional investors, Chen flyover can withstand the losses caused by other incubation business.　　We awarded the "neutral" rating of Shanda's online stock, which set the target price at $34. Chen proposed privatization: According to preliminary non-binding recommendations, Chen a 41.35-dollar cash purchase per share of the United States depository shares of Chen, Chen wife Luo Qianqian, and Chen Tianqiao younger brother Danian currently has not held a royal network of the remaining full circulation shares. The $41.35 per share offer is attractive because the offer is 24% higher than the Friday closing price of the grand Web, and the 34-dollar target for the Grand network is 22%.　　At present, these three people hold 68.4% of the grand network of circulation shares.　　Preliminary non-binding Letter of recommendation: This preliminary, non-binding letter of recommendation also leaves a lot of uncertainty about the potential deal, suggesting that "there is no guarantee of a formal offer for the acquisition plan". The letter of recommendation is feasible: we consider the proposal feasible. If a final agreement can be reached, it will provide more flexibility for Shanda networks, such as strengthening integrated service platforms, other emerging businesses other than hatching games. Compared with institutional investors, Chen Tianqiao can withstand the losses caused by other incubation operations.　　However, due to the limited profit space of Shanda and the uncertainty of profit margin, we think that the stock price will not rise too much in the short term. Stock Rating: We awarded the "neutral" rating of Shanda's online stock, which set the target price at $34. (Li Ming) share: