Why Consolidated Communications Stock Is Booming Today

Consolidated Communications CNSL shares are trading higher after Searchlight Capital and BCI submitted a non-binding proposal to acquire all outstanding shares of Consolidated Communications.

What Happened: On Wednesday, Searchlight Capital and British Columbia Investment Management Corporation (BCI) submitted a letter of a non-binding proposal to purchase all outstanding shares of Consolidated Communications for $4 per share. The $4.00 per share offer price indicates a premium of 52% from the 30-day trading volume-weighted average price.

In the proposal letter, Searchlight and BCI noted that if the companies were to acquire Consolidated Communications, they would "invest incremental capital into the Company to complete the fiber build-out and fully fund the plan through the Company turning free-cash-flow positive, which we believe would be the best outcome for all of the Company’s stakeholders."

Consolidated Communications Holdings Inc provides communication services for business and residential customers across various states in the U.S. Its business product suite includes data and Internet solutions, voice, data center services, security services, managed and IT services, and an expanded suite of cloud services.

Price Action: According to data from Benzinga Pro, Consolidated Communications shares were up 38.8%, trading at $3.83 a the time of publication. The stock has a 52-week high of $8.48 and a 52-week low of $2.10. Today's session volume is 4.8 million, compared to the 100-day average volume of 529,200.

 

 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: M&APenny StocksSmall CapMoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!