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Fly News Breaks for July 21, 2016
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Jul 21, 2016 | 14:39 EDT
The sharp drop in shares of Monotype Imaging after the company announced it plans to acquire privately-held Olapic for $130M is " not so much a reflection that investors hate the acquisition," as it is about the "information vacuum" left by the company, which offered few financial details on either the degree of dilution or the current state of the core business, according to Dougherty analyst Steven Frankel. While the $130M price tag looks "steep," Frankel recommends patience ahead of the company's earnings call next week and keeps a Buy rating and $30 price target on Monotype shares, which are down nearly 20% to $19.96.
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