What happened
Shares of PGT Innovations (PGTI) were up 21.1% as of 1 p.m. ET after a report that the storm window and door manufacturer rebuffed an acquisition offer from Koch Industries-backed window and door leader Miter Brands.
So what
According to Reuters this morning, PGT received an unsolicited, fully financed offer from Miter Brands to acquire PGT for $33 per share, valuing the company at around $1.9 billion -- a sum PGT's board of directors "deemed inadequate." PGT stock is currently trading around $31.69 per share.
PGT declined to comment on the news, while Miter Brands hasn't responded to requests for comment.
It's equally unsurprising that not only is PGT an acquisition target, but it's also resisting its suitor's initial effort to strike a deal. PGT only recently adopted a so-called "poison pill" in March 2023 to prevent any single investor from building an ownership stake of 10% or more, citing "a likely accumulation of PGT shares by a strategic investor."
Now what
There are no guarantees that a deal will be reached. But Reuter's sources added that Miter is considering whether to raise its offer to $36 per share, which would mark a 35% premium from PGT's closing price on Monday.
If that happens, we'll almost certainly see another proportionate surge in PGT's share price. But if Miter opts to back off or PGT resists yet another fair offer, you can be reasonably sure today's pop will prove to be short-lived.
