News of an apparently impending sale to a strategic investor sent shares of Exact Sciences (EXAS +23.68%) skyward on Wednesday. The cancer diagnostics specialist's shares closed the day nearly 24% higher in price as a result.
Pinpointing the Exact reason
In an article published that morning and updated in the afternoon, Bloomberg reported that pharmaceutical sector mainstay Abbott Laboratories appears to be on the brink of acquiring Exact Sciences.
Image source: Getty Images.
Citing unidentified "people familiar with the matter," Bloomberg added that the two healthcare companies are discussing the terms of a buyout. These talks are apparently well advanced, as the article's sources said a deal could be announced within a matter of days.
That said, this is no guarantee at this stage that a buyout will be agreed, those sources added. It may be delayed or not occur at all.
Neither Abbott nor Exact Sciences opted to comment on the story when contacted by the financial news agency.
NASDAQ: EXAS
Key Data Points
Beware speculation
It's always risky to trade in or out of a stock purely on buyout speculation -- and despite the apparently late-stage status of the talks, any Abbott/Exact deal remains speculative as of this writing (early evening on Wednesday).
A near 24% jump in share price means that, most likely, the bulk of any premium being paid by a potential buyer has already been factored into the latter's stock price. I'd advise being very careful with this one.
