Orbotech Ltd (NASDAQ: ORBK) is having a strong start to the trading session this morning, and for good reason. The comapny announced an update surrounding a merger, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The merger announcement;
- what we’re seeing from ORBK stock as a result; and
- what we’ll be watching for ahead.
ORBK Announces Merger News
As mentioned above, Orbotech is having a strong start to the trading session this morning after announcing merger news.
In a press release issued early this mroning, the company said that it has taken part in a series of cooperative discussions. As a result of these discussions, the State Administration for Market Regulation of the People’s Republic of China has provided antitrust clearance for a proposed merger.
As a result of the clearance, the ORBK can now merger with KLA-Tencor Corporation. The decision was dated February 13, 2019. As a result of the decision, it is expected that the merger will come to a close tomorrow, February, 20, 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we dive into the market is that the news leads to moves. When it comes to Orbotech, the news proved to be positive. As a result of the regulatory clearance, the company now has the ability to merge in a transaction that will provide incredible value to both sides.
Considering this, it’s not surprising to see that investors are excitedly pushing the stock for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:07), ORBK is trading at $66.08 per share after a gain of $3.17 per share or 5.03% 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 ORBK. In particular, we’re interested in following the story surrounding the company’s merger as the transaction is epected to close tomorrow. Nonetheless, we’ll keep an eye on the news and bring it to you as it breaks!
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