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Why Covanta Holding Corporation Stock Popped Today

By Rich Smith - Jun 9, 2021 at 11:22AM

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Rumors suggest Covanta could be worth $25 a share to a buyer.

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."

Wall painting depicts a large yellow fish eating a smaller yellow fish.

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.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Covanta Holding Corporation Stock Quote
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