Why Greenbrier and American Railcar's Shares Dropped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of The Greenbrier Companies (NYSE: GBX  ) fell 12% today, after its ongoing saga with American Railcar Industries (NASDAQ: ARII  ) , which also fell 10%, continued.

So what: The Carl Icahn-controlled American Railcar said it would bump up its offer for Greenbrier to $22 per share, still below what Greenbrier's board wants. Greenbrier came back and said it would buy American Railcar for a small premium. Both stocks are falling on the back and forth negotiations.  

Now what: Icahn has wanted to combine the companies for some time, and investors had been betting on a higher offer for Greenbrier; but even that doesn't seem like it will go through. The offer from American Railcar ends on Friday at 2:00 PM ET, so that's why the stock is down sharply today.

This is why betting on mergers is a tough business. Now that it appears that both sides are set against a merger, investors in both companies will lose out. Stay tuned to what happens next in this back and forth story.

Interested in more info on Greenbrier? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2165161, ~/Articles/ArticleHandler.aspx, 10/28/2016 1:53:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,112.41 -57.27 -0.32%
S&P 500 2,124.81 -8.23 -0.39%
NASD 5,189.26 -26.72 -0.51%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 1:36 PM
ARII $37.77 Up +0.55 +1.48%
American Railcar I… CAPS Rating: ***
GBX $30.50 Down -0.40 -1.29%
The Greenbrier Com… CAPS Rating: *****