Pre-Paid Legal Services Skyrocketing (PPD)

Pre-Paid Legal Services, Inc. PPD shares are skyrocketing, gaining more than 6% on heavy volume. A Bloomberg article said that Cerberus is in talks with the company over a potential buyout. Thomas Smith, the head of an investment group that owns over 25% of Pre-Paid, signed a deal with Cerberus Capital on January 18 to speak to Cerberus about a potential takeover of the company. In October, Pre-Paid said that it received an offer from a "well known" private equity company to acquire the company for $60 in cash. At last check, shares were up $1.57 to $61.50, a gain of 2.6%. Pre-Paid Legal Services, Inc. designs, underwrites, and markets legal expense plans in the United States and Canada. It sells memberships, which allow members to access legal services through a network of independent law firms.