2023-06-14 13:39:45 ET
iRobot ( NASDAQ: IRBT ) g ained 1.3% on Wednesday after advancing 3.5% on Wednesday and has risen for five of the last six sessions ahead of a Friday deadline for the UK's antitrust regulator to decide if its planned sale to Amazon ( NASDAQ: AMZN ) will be moved into an in-depth review.
The recent stock gains also come after the Federal Trade Commission recently held three closed door meetings, where some investors expected the agency could vote to block the $1.7 billion iRobot ( IRBT ) sale. The FTC held a closed door meeting last Wednesday and had two closed door sessions on Monday.
iRobot ( IRBT ) received a second request from the FTC in September to do a more in-depth review of the Amazon ( AMZN ) deal. In April, the UK's Competition and Markets Authority announced the commencement of a Phase 1 probe into the iRobot ( IRBT ) transaction.
iRobot ( IRBT ) jumped 9.2% on June 1 after Dealreporter said Amazon ( AMZN ) had certified substantial compliance with the FTC regarding its planned acquisition of the Roomba vacuum maker. Amazon confirmed the company certified, though it declined to say if the parties signed a timing agreement with the regulator.
iRobot ( IRBT ) shares have jumped about 20% since the June 1 story, though the robot vacuum maker is still trading at a 30% discount to the $61 a share deal price. The deal spread is the narrowest since late April. iRobot's recent gains could also be due to a short squeeze, according to traders, as the company has 11.6% short interest.
More on iRobot/Amazon
- IRobot: Merger Risks-Reward Balancing, Taking Profits (Rating Upgrade)
- Amazon-iRobot And 16 Other Opportunities In Merger Arbitrage Space
- IRobot: Bad Odds On The Amazon Deal Make This One A Sell
- Amazon agrees to settle FTC claims Ring doorbell spied on users
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iRobot gains ahead of UK antitrust decision on Amazon deal