SPX Flow stock set to rally after announcing review of possible sale of company
Shares of SPX FLOW Inc.
FLOW,
were indicated up about 5% in premarket trading Monday, after the fluid handling, mixing, blending and thermal heat transfer process technologies company said it is reviewing strategic alternatives, including a possible sale of the company. The company’s announcement comes after it received and rejected an unsolicited buyout bid by Ingersoll Rand Inc.
IR,
for $85 a share, which followed a previously rejected bid of $81.50 a share. The company said it determined Ingersoll Rand’s bids “did not adequately value the company, given its confidence in its potential for increased profit margins and growth. “As a result of additional inquiries received from interested parties, the Board believes it is appropriate to initiate its review of a broad range of strategic alternatives with the goal of delivering the most value to our shareholders,” the company said in a statement. Ingersoll Rand’s stock was still inactive in premarket trading. Year to date, SPX FLOW’s stock has rallied 31.3%, while the S&P 500
SPX,
has gained 17.5%.
