Why AsiaInfo-Linkage Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AsiaInfo-Linkage (NAS: ASIA) soared by as much as 17% today, popping intraday on reports that private-equity funds may be interested in acquiring the company.
So what: The company had received a buyout offer in January from a subsidiary of CITIC Capital China Partners and also saw similar private equity buyout speculation the following month in February, according to Reuters. The speculation is back, with Reuters again saying that private-equity funds have expressed interest in acquiring the company.
Now what: Potential suitors include Silverlake, TPG Capital, and Primavera Capital, and the possible deal supposedly values AsiaInfo at more than $1 billion. The company had previously tapped Goldman Sachs as an advisor and began scouting for other offers in March. Other bidders are now throwing their hats in the ring, and all offers are due near the end of the month.
Interested in more info on AsiaInfo-Linkage? Add it to yourWatchlist.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Goldman Sachs. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.