Zeltiq Aesthetics Saw Aggressive Buying Ahead Of Allergan Takeover

Zeltiq Aesthetics Inc ZLTQ shares are trading higher by $6.28 (12.5 percent) at $55.68 in Monday's session.

Before the open, Allergan plc Ordinary Shares AGN announced it would purchase the company for $2.47 billion or $56.50/share. The Street is factoring in a small discount to that price (calculated on the chances of approval) as the issue has traded no higher than $55.85.

However, some investors may have been anticipating a deal in the works as early as last Wednesday. On that day, the issue rallied from $45.25 to $46.20 on 585,000 shares. This continued on Thursday as the issue rallied from $46.20 to $47.08 on over 50 percent its 200-day average, when 1.25 million shares changed hands.

Yet again, the issue rallied from $47.08 to $49.40 on nearly four times its 200-day average when 3.31 million shares traded on Friday.

Thus, the actual premium paid for the company shrunk from 25 percent to 14 percent in three days, which in the previous week had traded in a 6 percent range.