DY - Why Tallgrass Energy Chico's FAS and Dycom Industries Jumped Today
The stock market gained ground on Wednesday, buoyed by enthusiasm about the potential for continued U.S. economic growth. Prospects elsewhere around the world have been increasingly cloudy, especially in light of U.K. Prime Minister Boris Johnson's planned move to support a no-deal Brexit later this year. Yet investors have higher expectations domestically, and good news from key sectors of the economy contributed to positive market sentiment. Tallgrass Energy (NYSE: TGE), Chico's FAS (NYSE: CHS), and Dycom Industries (NYSE: DY) were among the top performers. Here's why they did so well.
Shares of Tallgrass Energy soared 35.5% after the energy company got a buyout bid from private equity specialist Blackstone Infrastructure Partners. Under the terms of the deal, Tallgrass investors would receive $19.50 per share for their interests in the pipeline company, representing a substantial premium to the $14.35 per share price for the stock as of Tuesday afternoon. Blackstone and its partners and affiliates already hold about 44% of the economic interest in Tallgrass, and taking complete control would give Blackstone more flexibility in managing the energy company. Consolidation in the energy industry has been rampant, and this would mark just one more deal to combine key players in the market.
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