Zayo Group Holdings Inc (NYSE: ZAYO) is rocketing in the market this morning, and for good reason. According to various sources, the company is the topic of interest for a potential takeover. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about the potential takeover, what we’re seeing from ZAYO as a result and what we’ll be watching for ahead.
ZAYO May Be Taken Over
As mentioned above, Zayo Group is having an incredibly strong start to the trading session this morning after news broke that the company may be taken over. According to various sources, the company is the center of takeover interest from a group of investors.
According to these reports, Blackstone Group LP, Stonepeak Partners LP and KKR & Co., I Square Capital, GTCR and Carlesbank Capital Partners are the members of the investor group interested in taking Zayo into the private sector.
While the reports are coming from highly reputable news outlets, it’s important to remember that no deal has been made as of yet. Nonetheless, this is an interesting story, and should a takeover take place, it will likely happen at a strong premium, immediately returning value to shareholders.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. When it comes to Zayo, the news proved to be overwhelmingly positive. With takeover interest in the company, investors may see a large return of value relatively soon. So, it’s not surprising to see that investors are excited, sending the stock screaming 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 (11:13), ZAYO is trading at $26.07 per share after a gain of $2.40 per share or 10.14% 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 ZAYO. In particular, we’re interested in following the story surrounding the company’s potential takeover. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!