AmTrust Financial Services Inc (NASDAQ: AFSI) is having an overwhelmingly strong day in the market today, and for good reason. The company announced the consideration of a potential acquisition that led to excitement among investors. Below, we’ll talk about the updates, what we’re seeing from the stock, and what we’ll be watching for ahead.
AFSI Soars On Corporate Updates
As mentioned above, AmTrust Financial Services is having an overwhelmingly strong trading session in the market today after announcing a series of corporate updates. In a press release issued early this morning, the company announced that its board of directors has appointed a special committee to consider the January 9, 2018, proposal to acquire the company.
In the release, AFSI said the proposal came from private equity funds that are managed by Stone Point Capital LLC as well as Barry D. Zyskind, the current CEO and Chairman at AFSI, George Karfunkel, and Leah Karfunkel. The acquisition proposal came with a price of $12.25 per share.
In the press release, AmTrust said that a special committee has been formed to consider the proposal. This committee includes Donald T. DeCarlo, Susan C. Fisch, Abraham Gulkowitz, and Raul Rivera, all of whom are AFSI Directors.
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. In general, news surrounding acquisitions tends to lead to massive movement, and that’s exactly what we’re seeing today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:02), AFSI is trading at $12.63 per share after a gain of $2.48 per share (24.43%) 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 AFSI. In particular, we’re interested in following the story surrounding the potential acquisition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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