Why Duff & Phelps Shares Soared

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 investment advisory firm and investment bank Duff & Phelps (NYSE: DUF  ) soared as much as 22% after agreeing to be purchased by a consortium, including The Carlyle Group (NASDAQ: CG  ) , for $665.5 million.

So what: The deal, which values Duff & Phelps at $15.55 per share and is a 19.2% premium to its Friday close, is being led by Carlyle Group with financial backing as well from Stone Point Capital, Pictet & Cie, and Edmond de Rothschild Group. Also note that Duff & Phelps is currently traded roughly 1% higher than the agreed upon price by the board. This is most likely due to a note from research firm William Blair that opined that, although a higher bid is unlikely, FTI Consulting (NYSE: FCN  ) and Navigant Consulting (NYSE: NCI  ) likely considered a competing bid.

Now what: Now you can stop trying to play the guessing game of whether a higher bid will come and thankfully tender your shares. Just last month I took a closer look at Duff & Phelps and placed a CAPScall of outperform on the company, seeing incredible value and a hefty dividend. Ultimately, it appears that I wasn't the only one who took notice to Duff & Phelps' intriguing valuation.

Craving more input? Start by adding Duff & Phelps to your free and personalized Watchlist so you can keep up on the latest news with the company.

Read/Post Comments (0) | Recommend This Article (3)

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.

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: 2173877, ~/Articles/ArticleHandler.aspx, 4/1/2015 11:35:54 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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!