December 31, 2012
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.