Clovis Oncology Inc (NASDAQ: CLVS) is having an interesting start to the trading session this morning. While we have seen quite a bit of up and down this morning, the stock is currently spiking as the result of a takeover rumor. Of course, if a takeover were to happen, it would lead to an incredible return of value for investors. As a result, the rumor is causing quite a bit of excitement. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:10), CLVS is trading at $71.03 per share after a gain of $1.57 per share (2.26%) thus far today.
CLVS Gains On Takeover Rumors
As mentioned above, Clovis Oncology is having an incredibly strong start to the trading session this morning as rumors surface surrounding the company. According to the rumors, a takeover offer has been made by Eli Lilly & Co. (NYSE: LLY). The rumors suggest that LLY has put an offer in to take CLVS over at a price of $110 per share, representing an overwhelmingly strong premium, given the current price on the stock.
While this rumor is indeed exciting, it's important to remember that rumors, especially takeover rumors, are nothing new to the market. In fact, we see them just about every day. Nonetheless, market rumors are just like any other rumor. They are largely invalid. While this particular rumor has quite a bit more detail than most others in the market and the idea of a LLY takeover of CLVS is very practical, there has been no confirmation from either side of the fence. As a result, it's important that if you do trade based on this rumor, you do so with caution.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will keep a close eye on CLVS and LLY. In particular, we're interested in learning if the rumored takeover offer is valid. Of course, if the rumors are correct and CLVS does indeed take the offer, we'll see a strong return of value to investors. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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