What happened
Shares of 51job (JOBS), a Chinese job-search and human-resources services company, slipped 10.1% in October, according to data from S&P Global Market Intelligence.
The stock appears to have lost ground for two reasons: a pullback for the broader market, and investor impatience about the company's potential acquisition by DCP Capital Partners.
51job stock climbed 19% in September, thanks to news that DCP Capital Partners had issued a nonbinding offer to acquire the company at a price of roughly $5.3 billion -- or $79.05 per share. Despite DCP's recent offer, some 51job shares were sold off last month in conjunction with a pullback in the broader market, and the company's share price ended October down by double digits.
Image source: Getty Images.
So what
Aside from special advisory committees being formed at 51job to analyze the potential offer and other future options, there hasn't been any substantive news on the DCP buyout offer or the company's research into potential strategic alternatives. Investors might get an update when 51job reports third-quarter results, which will likely happen later this month or early in December.
Now what
51job stock has regained some ground early in November's trading. The company's share price is up roughly 4.5% in the month so far:
51job shares now trade roughly 7% below DCP's buyout bid, and the company has a market capitalization of approximately $4.9 billion. Its stock is now down 13.4% year to date, and it might not see much pricing movement outside of its current range until more details emerge about the response to DCP's offer.
