Shares of AVX Corporation (NYSE: AVX) took off like a rocket in Wednesday trading after it was revealed that Japanese electronics conglomerate Kyocera Corporation (OTC: KYOCF) wants to acquire it.
Kyocera already owns approximately 72% of AVX stock and now wants to buy the remainder. Shares of AVX, which makes electronic components for the automotive, telecom, and semiconductor industries, are up 34.7% as of 10 a.m. EST.
Image source: Getty Images.
AVX itself hasn't yet commented on the development, but this morning, Kyocera published a press release advising that it has proposed to AVX's board buying the 28% of AVX shares it doesn't yet own, paying AVX shareholders $19.50 per share for their stock.
Kyocera noted in its release that such a price would represent "a 29.7% premium over the closing price as of November 26, 2019" -- but AVX stock is already up more than that.
So how should investors interpret this? The higher-than-bid price AVX shares now fetch indicates that the market is anticipating either a rejection of Kyocera's bid (and a higher bid to follow) or else a competing bid from some other acquirer (likewise at a price higher than Kyocera has bid).
Either way, even up 35% already, it looks like these shares might have more room to run.
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