QEP Resources Inc (NYSE: QEP) is having an overwhelmingly strong start to the trading session this morning. However, there hasn’t been any press releases or SEC filings issued by the company. So, what’s the deal? Well, the gains have to do with a takeover offer. Today, we’ll talk about:
- The takeover offer;
- what we’re seeing from QEP stock as a result; and
- what we’ll be watching for ahead.
QEP Gains On Takeover Bid
As mentioned above, QEP Resources is having an incredibly strong start to the trading session this morning after a takeover bid has hit the mainstream news. According to various reports, Elliott Management Corp has made an offer to buy the company, calling it deeply undervalued when explaining the opportunity surrounding the potential takeover.
According to the reports, Elliott Management has made an offer of $8.75 per share, bringing th total acquisition value to approximately $2.07 billion. At that price, the offer represents a 44% premium to the closing price of the stock on Friday.
QEP has yet to make a statement with regard to the takeover offer. As a result, there can be no assurance that any transaction will take place. Nonetheless, if the transaction does occur, it will drive tremendous value for shareholders.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comse to QEP, the news proved to be overwhelmingly positive. After all, one of the largest investment firms in the world has taken an interest in the stock and shown how valuable they see it to be with a takeover offer at an incredible premium. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:29), QEP is trading at $8.41 per share after a gain of $2.33 per share or 38.32% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on QEP. In particular, we’re interested in following the story and seeing the company’s response to the very public takeover offer. Of course, a positive response would be a big win for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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