Depomed Inc (NASDAQ: DEPO)
While Depomed was trading in the green all day, there wasn’t much movement on the stock as things went on as usual. However, minutes ago, that started to change when the stock started gaining big. Today, we’ll talk about the spike we’re seeing in the stock, why, and what we can expect to see from DEPO ahead.
What We’re Seeing From DEPO
As mentioned above, Depomed was off to a relatively normal day in the market thus far today – that is, until a few minutes ago. At the moment, the stock is in the midst of a high-momentum spike upward. Currently (2:58), DEPO is trading at $22.28 per share after a gain of $0.46 per share (2.11%) thus far today.
Why We’re Seeing The Spike
As soon as we noticed the spike in value on DEPO, the CNA Finance team started to look into what was causing the movement. It didn’t take long to uncover the story. According to several reports, Mallinckrodt (MNK) has made a bid to takeover the company. According to the reports, the bid is held at a value of about $2.6 billion.
What We Can Expect To See Ahead
Moving forward, I’m going to warn you to be cautious here. I’ve seen several reports of potential buyouts from Intereconomia, and while some of them are true, they have reported early on deals that have fallen through. This is the source that’s reporting the deal that’s sending DEPO skyrocketing.
With that said, the potential acquisition does make sense, as Mallinckrodt has quite a bit to gain from the acquisition of Depomed. Nonetheless, the story has not yet been confirmed. So, we’ll be watching the development closely and bringing you updates on DEPO as they become available.
[Image Courtesy of Wikimedia]