Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Boise 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 packaging and paper products company Boise (UNKNOWN: BZ.DL  ) soared 26% today after larger rival Packaging Corp. of America (NYSE: PKG  ) agreed to acquire it for $1.27 billion.

So what: The transaction values Boise at $12.55 per share and represents a juicy 26% premium to its closing price on Friday. Packaging Corp. is making the move to increase its container board capacity in order to support growth, and judging by its own stock's 7% jump today, Wall Street is pleased with the price management is paying to do it.

Now what: The deal -- which is expected to close in the fourth quarter -- will boost Packaging Corp.'s containerboard capacity from 2.6 million tons to 3.7 million tons and should increase its corrugated products volume by roughly 30%."The acquisition is an excellent fit, both geographically and strategically, with unique and substantial synergies," said Packaging Corp. Chairman  Paul Stecko. "The combined company is expected to generate strong financial results and strong cash flow which will be used to pay down debt as well as to continue to return value to our shareholders." So while Boise is likely all popped out at this point, Packaging Corp.'s newly bolstered capacity and growth prospects might be worth looking into. 

More Stocks to Consider
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

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

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: 2639566, ~/Articles/ArticleHandler.aspx, 9/29/2016 4:56:38 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 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

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

12/31/1969 7:00 PM
BZ.DL $0.00 Down +0.00 +0.00%
Boise CAPS Rating: **
PKG $79.72 Down -1.94 -2.38%
Packaging Corporat… CAPS Rating: *****