April 14, 2009
Shares of NBTY were up approximately 7% on Monday as speculation swirled about the company being acquired. Shares closed at $18.43 on Monday, a 6.1% increase over Friday’s close. According to a Newsday.com article citing information from Briefing.com, Nestlé is the company being mentioned as a potential acquirer.
Details are sparse and neither company would confirm or deny the rumor, according to Newsday. Financing remains a challenge and could be tough to get done in this economic environment, according to B. Riley & Co. Analyst Nick Genova. Scott Van Winkle, Managing Director of Equity Research with Canaccord Adams, cautioned that the rise could be the result of an overly-discounted valuation. Canaccord has the shares valued at over $20 per share.
Shares had dipped to $17.53 by midday on Tuesday. Follow NBJ on Twitter to receive live updates on the developing story.
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