LifePoint Health Inc (NASDAQ: LPNT) is flying early on in the trading session this morning, and for good reason. The company bacame the center of headlines in the after-hours on Friday, surrounding the idea that it is in advanced talks to be acquired. Of course, the news led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from LPNT stock as a result; and
- what we’ll be watching for ahead.
LPNT Gains On Acquisition News
As mentioned above, LifePoint Health is having an incredible time in the pre-market hours this morning after the company center of headlines surrounding a potential acquisition. The story first broke in after-hours trading on Friday, sending the stock up 40%+.
According to the reports, LPTN is currently in advanced talks to be acquired. According to Reuters, the original source of the story, these advanced acquisition talks are taking place with Apollo Global Management. If the transaction does go through, the reports suggest that the company would be valued at $6 billion, which includes almost $3 billion in debt.
While there has been no confirmation from either company involved, the potential acquisition makes sense. Apollo Management is already the owner of another hospital chain that is focused on rural markets. So, the acquisition of LPNT would fit right into that area of its company.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of LifePoint Health, the news proved to be overwhelmingly positive. After all, if this acquisition does indeed take place, it will happen at a strong premium, offering investors a decent return on their investment at closing. So, it’s no surprise that excited investors are sending the stock up. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:22), LPNT is trading at $64.15 per share after a gain of $16.25 per share or 33.92% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LPNT. In particular, we’re interested in following the story surrounding the potential acquisition of the comapny. After all, if this deal does go through, it will generate strong value for investors. Nonetheless, we’ll continue to keep a close eye on the story and bring the news to you as it breaks!
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