Why 51job Stock Tanked 19% on Monday
Shares of 51job (NASDAQ: JOBS) were down 19% around noon EST on Monday. The Chinese human resources company put out a press release saying that its plans to go private at a valuation of $5.7 billion are seeing a roadblock from Chinese regulators.
Back in early summer, 51job announced it had plans to go private through a group of buyers called Garnet Faith Limited at a transaction price of $5.7 billion. This caused 51job's stock to jump on the news, as the transaction value was substantially higher from where the stock was trading at. However, over the last few months, it looks like investor confidence in the deal has wavered, bringing the stock back down to a market cap of $3.6 billion.
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Source Fool.com
