Why Sorrento Therapeutics Stock Is Skyrocketing Today
Shares of Sorrento Therapeutics (NASDAQ: SRNE) were skyrocketing 41.4% higher as of 11:41 a.m. EST on Friday. This big gain came after Sorrento announced earlier in the morning that it had received a nonbinding proposal from an unnamed private equity firm to acquire either all or a majority of the shares of the company for up to $7 per share. That amount would set the price tag for fully acquiring Sorrento at more than $1.1 billion.
Investors were understandably excited about today's news of a potential acquisition of Sorrento. An offer isn't surprising, considering that the biotech rejected two other buyout bids in November. However, the previous offers were only $3 and $5 per share, respectively. Sorrento's board of directors decided that the bids "seriously undervalued" the company. It looks as if the board made the right decision in light of the latest offer.
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Source Fool.com
