By Jake King
Merge Healthcare Inc. (NASDAQ:MRGE) could be seeing the first round of corporate bids next week, according to dealReporter
. Offers to buy the company, expected October 5th, could be coming from private equity firms, according to the report. Note that we estimate, based on an industry EV/forward sales multiple, that MRGE could be worth nearly $9.00 a share on fundamentals, and recently brokerage firm RW Baird & Co. stated that the stock could be worth $8.00 to a strategic bidder. See PropThinks prior report on MRGE by clicking here
. Expect MRGE to strengthen based on recognition of the company's discounted valuation, as well as the potential for a buyout.
In connection with MRGE, PropThink has taken a long position. Our full disclaimer is available at http://www.propthink.com/disclaimer.