What happened
Shares of New Jersey-based waste management company Covanta Holding (CVA) are up 10.4% as of 11 a.m. EDT on rumors of a reported buyout.
So what
As TheFly.com reported this morning, the Dealreporter.com website is citing "four sources familiar with the situation" that say Covanta has retained Bank of America to advise it on a potential sale.
A "handful of financial buyers, including infrastructure funds," are reportedly considering buying Covanta, says Dealreporter, and the bidding is already in "the middle of the second round."
Image source: Getty Images.
Now what
As for Covanta itself, it's keeping mum -- no word on who might be interested in buying it, or on how much they might be willing to pay. Over the weekend, however, Simply Wall Street published a report suggesting that Covanta could "potentially" be worth as much as 67% more than its Friday closing price of $14.90 per share. This implies that if the rumors are true, a buyout price of nearly $25 per share isn't out of the question.
As high as Covanta stock is flying today -- it might go even higher.
