Why Pactera Shares Skyrocketed

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 Pactera (NASDAQ: PACT  ) have skyrocketed today by as high as 34% after receiving a buyout offer to go private.

So what: Company insiders and Blackstone (NYSE: BX  ) have submitted a non-binding proposal offer to purchase all outstanding shares in a $680 million deal that would take the company private at $7.50 per share. The deal would be financed with equity capital as well as third-party debt.

Now what: The board is forming a special committee of independent directors to review the proposal with the assistance of a financial advisor and legal counsel. Pactera warns that nothing is finalized and says shareholders should be cautious of trading based on the proposal, although that hasn't stopped shares from soaring today. The insiders involved in the proposal include non-executive Chairman Chris Chen, CEO Tiak Koon Loh, and executive committee members David Chen, Sidney Huang, and Jun Su.

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

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.


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.

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: 2441935, ~/Articles/ArticleHandler.aspx, 11/23/2014 10:08:16 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...


Advertisement