Kate Spade Agrees To Deal At A Disappointing Price For Many Investors

Kate Spade & Co KATE share are trading higher by $1.40 (8.2 percent) at $18.37 in Monday' session.

Before the open, the company agreed to be acquired by Coach Inc. COH for $18.50 per share cash.

That price is a deep discount to the levels that the stock traded at for all of March. Since February 16, the stock traded in a range from $21.33-$24.44 as investors speculated a deal would be consummated in a deal in that range.

That hope ended on April 4, when Kate Spade revealed it was unhappy with the current terms of the deal and was exploring other options. At first, that knocked the stock to the $20.00 level and then as low as $16.62 last Thursday, before ending the week at $16.97.

It should be noted the actual price being paid for the company corresponds to the range the stock originally spiked to in late December, when initial rumors of the deal surfaced.