Why Duff & Phelps Shares Soared
Dec 31st 2012 4:00PM
Updated Dec 31st 2012 4:06PM
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 investment advisory firm and investment bank Duff & Phelps soared as much as 22% after agreeing to be purchased by a consortium, including The Carlyle Group , for $665.5 million.
So what: The deal, which values Duff & Phelps at $15.55 per share and is a 19.2% premium to its Friday close, is being led by Carlyle Group with financial backing as well from Stone Point Capital, Pictet & Cie, and Edmond de Rothschild Group. Also note that Duff & Phelps is currently traded roughly 1% higher than the agreed upon price by the board. This is most likely due to a note from research firm William Blair that opined that, although a higher bid is unlikely, FTI Consulting and Navigant Consulting likely considered a competing bid.
Now what: Now you can stop trying to play the guessing game of whether a higher bid will come and thankfully tender your shares. Just last month I took a closer look at Duff & Phelps and placed a CAPScall of outperform on the company, seeing incredible value and a hefty dividend. Ultimately, it appears that I wasn't the only one who took notice to Duff & Phelps' intriguing valuation.
Craving more input? Start by adding Duff & Phelps to your free and personalized Watchlist so you can keep up on the latest news with the company.
The article Why Duff & Phelps Shares Soared originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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