Continucare Shares Jump In Pre-Market On Acquisition News

Shares of Continucare Corp CNU jumped more than 17% in pre-market trading after Metropolitan Health Networks Inc MDF announced its plans to buy Continucare for around $416 million in cash and stock. Under the deal, CNU's stakeholders would receive $6.25 in cash for each share of common stock and a 0.0414 share of MDF. The deal valued Continucare at $6.45 per share, representing around 24% premium to CNU's three-month price average. The deal is likely to close in the third quarter and add to MDF's earnings by 2012. CNU shares surged 17.82% to $5.62 in pre-market trading, while MDF shares gained 1.88% to close at $4.88 on Friday.