Patriot National Inc (NYSE: PN)
Patriot National was off to a relatively normal day in the market today. The stock was in the green early on, but the movement was nothing to write home about. Nonetheless, minutes ago, the stock started spiking in a big way. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to PN ahead.
PN Is Spiking!
As mentioned above, Patriot National didn’t shock or surprise early on today. While the stock has stayed above the green line the entire session, the gains have been nothing to brag about. However, minutes ago, the stock started to soar. Currently (10:48), PN is trading at $6.45 per share after a gain of $0.29 per share (4.71%) thus far today.
Why The Stock Is Climbing
As usual, as soon as we saw that PN was climbing, the CNA Finance team got to work to see what was causing the movement. In this case, it took no time at all. Recently, Patriot National was offered a bid of $475 million to take the company over. That’s a very good premium with the company’s market cap currently being just over $155 million.
Nonetheless, today, PN has declined the bid. The company said it sees a better offer on the horizon. As a result, it doesn’t want to sell itself or its shareholders short. Of course, with the company turning down such a heavy bid with the prospect of a higher bid on the horizon, investors are going crazy!
What We’ll Be Watching For Ahead
Moving forward, we’ll be watching for the new bid. As mentioned above, the company just turned down a bid that represents more than a 100% premium on the current market cap, stating that they see a better offer in the future. I’m very curious to see what offer PN receives next and how investors react.
Nonetheless, we’ll be sure to bring the news to you as it breaks!
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[Image Courtesy of Pixabay]