HYMLF - Veoneer trades above deal price; one analyst sees possibility of competing bid

JHVEPhoto/iStock Editorial via Getty Images Veoneer (VNE) rose 3.6% and traded above the price for its announced deal with Magna International (MGA), an indication that some investors may be expecting a competing bid. Magna on Friday announced an agreement to acquire Veoneer for $31.25/share, representing a 57% premium to its previous day closing price. Veoneer shares closed today at $32.30, a 3.4% premium to the deal price. Magna rose 1% after falling about 5% on Friday after the deal was announced. Veoneer's major shareholders AMF, Cevian, AP4 and Alecta have all entered into support agreements with Magna or provided indications of support, the companies said Friday. There's a possibility of a competing offer, though it's unlikely, Baird analyst Luke Junk wrote in a note on Friday. "We believe a competing bid is possible, but not likely, with management confirming that VNE had discussions with other potential partners" on Friday's conference call, Junk wrote

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Veoneer trades above deal price; one analyst sees possibility of competing bid