WEBR - Weber shares trade through BDT offer even as higher bid seen unlikely by some

Shares of grill maker Weber ( NYSE: WEBR ) jumped 29% and traded above BDT Capital's offer to purchase the company even as at least one analyst downplayed the chance of a higher bid.

Weber ( WEBR ) is trading around $6.50, above the $6.25/share in cash that BDT Capital offered to buy the remainder of the company it doesn't already own for on Monday.

"In our view, this is a `take it leave it' type offer and counterbids (from other entities) among other alternatives seem a low probability," Wells Fargo analyst Chris Carey wrote in a note earlier Tuesday. Carey raised Weber to equal weight from underweight and his price to $6.25 from $4.

Carey highlighted that in BDT's proposal letter from Monday the investor said it's not interested in the disposition or sale of its shares in Weber ( WEBR ) and has no interest in participating in an alternative change of control transaction involving the grill maker. BDT added that it wouldn't vote in favor of any alternative sale, merger or similar transaction.

Citi analyst Chase Bender wrote that while the BTD offer looks "generous," he see the potential for the price to go higher.

Bender points out that Weber traded at 26.9x EV/EBITDA in mid-August, which equates to be about $9.50/share, he wouldn't be "surprised" to see a revised offer in between that price and the $6.25 offer. Bender has a sell rating and $2.75 price target.

Another reason for Weber ( WEBR ) trading through the deal price could be its high short interest, which is 47%.

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