WEBR - Why Weber Stock Was on Fire on Tuesday
Shares of Weber (NYSE: WEBR) were sizzling on Tuesday, surging as much as 44.4%. As of 10:59 a.m. ET, the stock was still up 37.3%. The catalyst that sent the grill maker rocketing higher was a buyout offer from its largest shareholder.
Weber announced today that it had received a non-binding proposal from BDT Capital Partners to acquire all the company's outstanding stock that it doesn't already own at $6.25 per share. The offer represented a 24% premium to the stock's closing price on Monday.
BDT is already Weber's largest shareholder, owning roughly 48% of the outstanding stock, and was a major shareholder prior to the company's initial public offering (IPO) . Weber went public last summer, pricing its shares at $14. It ended its first day of trading at $16.50, however, notching a valuation of nearly $5 billion. Since then, its stock has fizzled.
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Why Weber Stock Was on Fire on Tuesday