Multiple bidders circling, a few offers are already on the table.
This company has two buyout offers on the table. The board rejected both, but after talking to a major shareholder, they turned around and opened the books for due diligence to see if the bids could be pushed higher. Management says it’s also talking to multiple other suitors that could make competing bids. The ‘for sale’ sign is clearly out, and the language used here signals that a bidding war is exactly what the board wants. Meanwhile, media reports note a handful of credible buyers are circling, while one of the current bidders has been quietly accumulating shares in the open market.
The bigger picture setup makes perfect sense. The industry is in full consolidation mode, and a few peers have already been acquired this year. The initial offers look light and could easily be bumped by 20% to 30%+. Plus, the stock was trading at the current offer levels just a few months ago, meaning the suitors are trying to opportunistically lock something in while market sentiment is soft. With the stock still trading below the latest bid, there’s a decent we’ll see higher offers shortly.
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