Why Neff Corp. Stock Jumped 19% Today
Shares of Neff Corporation (NYSE: NEFF) closed up 18.7% on Monday after the earth-moving equipment renter revealed that it has received a "superior offer" to acquire it -- superior to the offer that H&E Equipment (NASDAQ: HEES) made last month, that is.
On July 14, H&E Equipment Services announced it had entered into a "definitive merger agreement" to acquire Neff before year-end for $21.07 per share in cash. Including Neff's $690 million in net debt, that made the deal worth $1.2 billion.
Turns out, though, that deal wasn't quite as "definitive" as H&E may have thought. Today, Neff revealed that a second "strategic bidder" has offered to up H&E's offer and buy Neff for $25 per share -- also all cash -- and Neff is inclined to (and within its rights to) prefer the superior offer.
Source: Fool.com
H&E Equipment Services Inc. Stock
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