Why QTS Realty Rocketed 22% at the Open Today
Shares of real estate investment trust (REIT) QTS Realty (NYSE: QTS) took off at the open on June 7, rising by as much as 22% in the first 30 minutes of the trading day. That gain is likely to be pretty sticky, too, given that it's tied to a takeover offer from Blackstone (NYSE: BX).
QTS, one of the smaller players in the data center space, announced before the market opened today that it had agreed to be acquired by Blackstone for $78 per share in cash. The total deal, including the assumption of debt, is valued at approximately $10 billion. The offer price represents a roughly 21% premium to where QTS' stock closed on the last trading day before the news was released. This sale essentially locks in some gains for shareholders. Blackstone, meanwhile, is clearly looking to bulk up its ability to play in what is still a fast-growing, though competitive, property niche.
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Source Fool.com
