ADNT - Auto supplier stocks rally after Tenneco attracts buyout offer at 100% premium

Auto supplier stocks outperformed on Wednesday after another blockbuster M&A deal was announced with Apollo Global acquiring Tenneco (TEN +93.3%) for $7.1B. Yesterday, Cummins (CMI -2.4%) swallowed up Meritor (MTOR +0.3%) in another eye-opening combination. The deal premium for Tenneco was 100% over the closing price yesterday. Apollo may have been attracted by Tenneco shares trading with a 4.7X PE multiple and 0.32 EV/sales multiple. Notable sector gainers include Cooper-Standard Holdings (CPS +18.4%), American Axle & Manufacturing (AXL +10.6%), Visteon (VC +4.9%), Stoneridge (SRI +3.2%), Strattec Security Corporation (STRT), Adient (ADNT +2.3%) and Magna International (MGA +2.2%). Those gains arrived with the S&P 500 Index down slightly on the day. Dig into details on the Tenneco-Apollo deal.

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Auto supplier stocks rally after Tenneco attracts buyout offer at 100% premium