J.P. Morgan Maintains Underweight on CNinsure (CISG)

J.P. Morgan is out with its report today on CNinsure CISG, maintaining Underweight, as CISG announced that it received an offer to privatize. In a note to clients, J.P. Morgan writes, "Given that CNinsure only requires another one-third of its shareholders to approve the transaction based on our preliminary understanding from management and in view of the relatively attractive pricing offered by the consortium, we see a very high probability of this privatization taking place. Should the privatization fail to materialize, we see this as another disruption to its operation. We expect positive share price reaction following this announcement." At the time of posting, shares of CISG were trading pre-market at $17.00, up 29.18% from Friday's close.