PRYMF - Encore Wire Merger Presents Interesting Proposition
2024-04-16 09:00:00 ET
Summary
- Encore Wire Corporation has agreed to be acquired by Prysmian S.p.A. for $290 per share, causing shares of Encore Wire to surge.
- The acquisition provides a strong margin of safety for shareholders, and there is potential upside with a go-shop period to solicit better offers.
- There are risks involved, including the possibility of litigation over whether this deal is fair to shareholders, with several law firms currently opening investigations.
Encore Wire To Be Acquired By Prysmian
Encore Wire Corporation ( WIRE ) has entered into an agreement to be acquired by Prysmian S.p.A. (PRYMF, PRYMY ) for $290 per share in an all cash deal , and shares of Encore Wire have surged in response. In my last analysis , I downgraded WIRE to a sell rating, as I believed that it was no longer undervalued....
Encore Wire Merger Presents Interesting Proposition