If Albert Lin, analyst at American Technology Research is to be believed then there are chances that Vonage could become an acquisition target. Vonage which had a very bad outing at the bourses said that it would be reimbursing the bankers who handled the issues in case their customers refused to pay for the shares allotted to them. Some of the customers have even refused to pay for the shares after it lost 26% of their value since opening on last Wednesday and by yesterday it fell another 52 cents to $12.50.
Vonage related web sites also suffered the wrath when few of the angry investors posted notes stating that they were not willing to pay for the shares and they even blamed the company and bankers for overvaluing the shares.
The company which is already bleeding with losses as a result of the aggressive marketing campaign has again suffered a serious blow with it its directed share program. I hope this is not the final nail in the coffin of Vonage. It would be better that the company puts itself on the block before it reaches the stage of bankruptcy.
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