Learning Tree to Be Bought Out?
Shares in professional development company Learning Tree International (NAS: LTRE) spiked 20% Monday as Chairman and CEO David Collins and his spouse made an offer to buy the company at $5.25 per share. The two currently own 31% of outstanding shares and are offering to buy all the remaining shares outstanding.
Collins argues that he is intricately familiar with the business and that if he took it over, it would be for the best of the future success of the company.
The stock closed at $5.10, up 20% from its open. It was trading as high as $5.15 per share after hours. Shares in the company surged even as the Dow Jones (INDEX: ^DJI) and the S&P 500 (INDEX: ^GSPC) fell for the day. About two-thirds of the Dow's 30 components lost ground today, and the S&P was down about a third of a percent.
The deal, if approved, would be for a total of $47.1 million. The fact that the stock did not immediately rocket to $5.25 reflects the risk that the deal won't be approved.
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