NCR - Why NCR Stock Jumped on Tuesday
Shares of NCR (NYSE: NCR) rose as much as 15.5% on Tuesday. As of 12:15 p.m. ET, the stock was up about 13%.
The sharp move higher followed a report from The Wall Street Journal stating that private-equity firm Veritas Capital was in talks with the information technology company about potentially buying it out. The talks, according to WSJ' s unnamed sources who are "familiar with the matter," are allegedly exclusive.
Investors , however, shouldn't count on the deal closing. Not only does it reportedly involve a significant amount of leverage -- increasing the odds of something going wrong compared to an all-cash agreement -- but the Journal said the deal could be weeks away from closing (if it does at all).
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Why NCR Stock Jumped on Tuesday