On Thursday, many investors resolved to sell out of Rezolve AI (RZLV +7.88%) stock. The key reason why was the latest development in a buyout attempt that was growing increasingly hostile in a hurry. Rezolve AI's shares plunged by just under 10% that trading session as a result.
An offer it can refuse
Rezolve AI's takeover target is a potentially quite complementary asset for the e-commerce-focused artificial intelligence (AI) company, fintech Commerce.com (CMRC +4.12%).
Image source: Getty Images.
On Wednesday, Rezolve AI announced it had approached Commerce.com's board of directors with a buyout proposal, under which the latter's investors would be given two shares of Rezolve AI for every share of Commerce.com they held.
According to the target company, this implied a 47% discount to its share price at the time. It said its board of directors determined this unsolicited proposal was a significantly lowball offer. Commerce.com added that it "does not warrant further engagement."
Rezolve AI then appealed to its target's shareholders with its one-for-two offer. It followed this on Thursday with a sharp criticism of the latter's board, which also served as a fresh appeal to investors. It stated that it is "offering Commerce.com's shareholders a path out of an illiquid mirage and into a company with real momentum, real liquidity and a clear line of sight to substantially greater scale."
NASDAQ: RZLV
Key Data Points
Who's got the popcorn?
After Thursday's market close, there didn't seem to be much enthusiasm for the deal among Commerce.com investors; it didn't help that Rezolve AI's actions felt overly aggressive and perhaps even desperate after the board's quick, decisive refusal. Its lunge at Commerce.com already feels like a stumble, though I should note that corporate tie-ups have been consummated in worse circumstances.
Investors of both companies, then, should keep a close watch on developments. As it stands now, though, I don't think the two will end up combining.
