EnergySolutions' Gets a Jolt on Higher Buyout Offer
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 EnergySolutions jumped 10% abruptly at 1:00 p.m. EDT after the company got an improved buyout offer.
So what:Energy Capital Partners raised its buyout offer from $3.75 per share, to $4.15, in an announcement made mid-day. Carlson Capital, L.P., who is the largest shareholder, said it would vote for this offer after opposing the earlier offer.
Now what: This makes the acquisition more likely to go through, which can be seen by how closely the stock is trading to the offer price. On April 26, EnergySolutions will hold a special stockholders meeting to vote on the offer, and I would expect it to go through. It may be wise to take some gains off the table considering the small amount of upside to the offer price. The acquisition still has to be approved by regulators, so there's still a chance it falls through and the stock could take a hit if it does.
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The article EnergySolutions' Gets a Jolt on Higher Buyout Offer originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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