Why TPC Group's Shares Jumped


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 TPC Group (NAS: TPCG) have jumped 12% today after getting a buyout offer.

So what:Innospec (NAS: IOSP) offered $44-$46 per share for the company in a non-binding all-cash offer. The company will fund the deal through equity financing from a Blackstone fund.

Now what: The proposal tops a previous offer from two private equity firms; TPC's board says they are considering the offer. For investors, it's great news that there's a bidding war, but it may be time to cash out some chips. Shares are currently trading at $45.60, close to the top end of the offer range. Betting on an increased offer is risky and I would be a seller today to reduce the risk of a deal falling through.

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The article Why TPC Group's Shares Jumped originally appeared on Fool.com.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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