Saint Paul-based 3M Co. recently announced plans to acquire a California manufacturer of fingerprint identification systems for $943 million, but San Diego mergers and acquisitions attorneys are noting that stock market activity seems to indicate that the price might not be high enough.

The $10.50-a-share cash offer for Cogent Inc. was made by 3M before the market opened, and Cogent's stock started the day at $10.56 a share. The closing price was $11.09. That was up more than 24 percent from Friday's close and its highest price since last January.  

Some experts are saying that the swift rise in price suggests...

another buyer may come along and top 3M's bid.

One analyst said the offer undervalues Cogent, in part because the company has such a stront cash flow. Cogent has around $513 million in cash, so 3M's real offer is about $430 million.

At least one law firm intends to look into potential breaches of fiduciary duty by the board of directors of Cogent. They recommended unanimously that shareholders accept 3M's offer. Neither 3M nor Cogent had any comment on the matter.

Source: Star Tribune "3M deal for fingerprint firm could entice others" August 31, 2010