Why Resolute Forest Products Stock Skyrocketed Today

Shares of Resolute Forest Products (NYSE: RFP) soared on Wednesday after the forest products leader struck a deal to be acquired by pulp and paper giant the Paper Excellence Group. As of 2:50 p.m. ET, Resolute's stock price was up more than 60%.

Under the terms of the agreement, Resolute's shareholders would receive $20.50 per share in cash for each share they own. That represents a premium of roughly 64% to the stock's closing price on Tuesday. The deal values the company at about $2.7 billion.

Resolute's stock owners would also receive contingent rights to the expected recovery of approximately $500 million of softwood lumber duty deposits through the second quarter.

Source Fool.com