Yet another offer bid, another special situation opportunity. On 10 Feb 2012, Nera Telecommunications announced that ST Engineering (STE) has offered to buy over Nera at S$0.45 per share, bringing to a total consideration of S$163m – based on 361.9m outstanding shares. Irrevocable undertaking has already been pledged by Eltek, a 50.5% substantial shareholder of Nera. Last done price for Nera closed at S$0.50, which means there will be a loss for some investors out there in any case the deal will close for STE. Another vivid reminder of how special situation (risk arbitraging) can hurt an investor. Despite the risk in such opportunities, it is still an opportunity and there is no harm learning and analysing STE’s offer. So is STE’s offer too cheap? Will there potentially be a higher bid? Nera Telecommunications’ business Well, to begin with, I didn’t have an intensive research on ......