Rubicon Stock Soars Toward 6 1/2-year High After Janel To Buy Large Stake At A 120% Premium -- MarketWatch
Shares Rubicon Technology Inc. (RBCN) soared 70.0% toward a 6 1/2-year high in premarket trading Tuesday, after Janel Corp. (JANL) launched a tender offer to buy a 45% interest in the optical systems company for $20.00 a share. The price of the tender offer represents a 119.8% premium to Friday's closing price of $9.10. The tender offer is expected to kick off within the next 10 business days and is expected to be completed about 30 days after the start. Rubicon said once the tender offer is completed, it will pay a special dividend of $11.00 a share to its shareholders. And after the closing, two current board member will resign and Janel will have the right to select their replacements, and Rubicon plans to start the process of voluntarily delisting its stock from the Nasdaq. Rubicon's stock has gained 1.5% year to date through Friday, while the S&P 500 has dropped 19.7%.
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