Rent-A-Center Inc (NASDAQ: RCII) is having an overwhelmingly strong start to the trading session today as news is breaking surrounding an increased takeover bid. After declining the most recent offer, the stock headed up and as news breaks that a new offer is ont he table, it’s going even higher. Today, we’ll talk about:
- The takeover bid;
- what we’re seeing from RCII as a result;
- and what we’ll be watching for ahead.
RCII Receives Incresed Takeover Bid
There’s a buyout firm on the market with an eye out for Rent-A-Center. Vintage Capital Management is clearly interested in buying the company as it submitted yet another offer. At the moment, news is breaking that Vintage Capital Management has sweetened its offer to buy the company to $14 per share in an all-cash transaction. Interestingly, the news comes just one day after the company said that it ended its sale process as it had not received any satisfactory offers.
While the increased offer has been made, RCII is staying firm on the idea that the company is no longer up for sale. In fact, the company did say that it received an increased offer from a suitor shortly after it ended its strategic review. However, the company made it clear that it is no longer up for sale. In a key snippet from the most recent offer leter sent to RCII, Vintage Capital had the following to offer:
We strongly believe that our proposal represents a value-maximizing outcome for RCII stockholders.
What We’re Seeing From The Stock
As potential suitors increase their offers for Rent-A-Center, investors are getting excited as they see potential value. So, it’s no surprise to see that the stock is headed upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:43), RCII is trading at $12.37 per share after a gain of $1.47 per share or 13.49% 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 RCII. In particular, we’re interested in seeing how the takeover attempt goes. While the company has been clear that it is no longer up for sale, if a stronger offer were to come along, it may not be able to reject it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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