UPDATE: Jefferies Raising Price Target on Tekelec

Jefferies & Co. is out with a research report on Tekelec (NASDAQ: TKLC) and it is raising its price target to $11 from $7, and it has a Hold rating on shares.

In a note to clients, Jefferies & Co. writes, "Tekelec announced today that it will be required by a consortium of private equity buyers for $11/share in cash. We believe this is a reasonably good outcome for current Tekelec shareholders, particularly in light of our concerns about the trajectory of the very large legacy Signaling business."

Shares of TKLC closed at $11.29 yesterday.