Wind River: A Hope For More Money (WIND, INTC)

Wind River Systems, Inc. (NASDAQ: WIND) has only been an in-play takeover name for merger investors for about 36 hours after yesterday morning’s announcement from Intel Corp. (NASDAQ: INTC) that it was acquiring the company for $11.50.  We noted how there is far more to this merger than meets the eye, and it looks like our synopsis that Intel was getting a steal is not alone.

Today, there were two announcements that would lead one to believe at least some holders and outsiders think the company is worth more than $11.50 per share.

During the trading session Friday, a firm called Finkelstein Thompson LLP announced that it was investigating the company as the offer for Wind River of $11.50 per share appears to be “opportunistically timed to take advantage of the current economic downturn.”

After the close came an announcement from Levi & Korsinsky, LLP that it is also investigating “Breach of Fiduciary Duty” by the Board of Wind River Systems.  It noted how shares were higher just in August 2008.

Our take here is that Intel is perhaps the biggest and most natural predator in this case.  But we also think at least three other companies could make the Wind River business for embedded systems much larger than Wind River could on its own, and there are probably ten potential merger partners that would be second-tier buyers.

You have heard of the game called “chicken” before.  It gets played in the world of Wall Street mergers also.

Jon C. Ogg