UPDATE: Stifel Nicolaus Upgrades Parkway Properties to Buy; Equity Infusion at Premium
Stifel Nicolaus upgrades Parkway Properties (NYSE: PKY) to Buy from Hold following equity infusion in the company at a 12 percent premium. Price target is established at $11.50
Stifel Nicolaus comments, "The reconstituted Parkway management team and board opted to increase the share count by 17.8mm shares (a 75% increase) at $11.25/sh, a 12% premium to the recent trading range. TPG, a private equity group, now owns roughly 43% of the company. The structure essentially guarantees shareholder approval; a concept that has clearly upset those potential investors hoping for a traditional roadshow or overnight offering, a chance to blast management and buy in at a 5% discount from the previous close. For existing investors, it is hard to not like the equity infusion as an astute private equity investor invested in the company at a 12% premium, while endorsing management and the strategy."
PKY closed at $9.96 on Thursday.
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