Shares of CalAtlantic Surge on Buyout Offer

Shares of homebuilder CalAtlantic (NYSE: CAA) are up 22% as of 10:30 a.m. EDT today. The spike comes on the heels of Lennar (NYSE: LEN) announcing it will buy CalAtlantic for $9.3 billion. For reference, shares of Lennar are down 2.7% as of this writing.

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In a deal to consolidate the homebuilding industry, Lennar is offering 0.885 shares of its company for every share of CalAtlantic outstanding, which would value CalAtlantic at $51.34 per share. CalAtlantic investors can also opt to take $48.26 per share, but that offer is only limited to $1.2 billion. The combined company, if the deal were to close, would have a top-three market share ranking in 24 of the 30 largest markets in the country.

Source: Fool.com