Why Cooper Tire & Rubber Stock Soared Today

Shares of Cooper Tire & Rubber (NYSE: CTB) were surging today after the company said it had agreed to be acquired by Goodyear Tire & Rubber (NASDAQ: GT) for $2.8 billion in a cash-and-stock deal that's equivalent to $54.36 per share. That represents a 24% premium to Cooper's closing price on Friday.

Investors cheered the move sending shares of both stocks up this morning. As of 10:18 a.m. EST, Cooper Tire shares had gained 26.1%, and Goodyear was up 11.1%. It's unusual for the buyer in an acquisition to gain by double digits, but that shows investors think it's a smart strategic play for Goodyear as well as a boon for Cooper Tire shareholders.

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Source Fool.com