UPDATE: Citigroup Downgrades Brightpoint to Neutral on Acquisition From Ingram Micro
Citigroup lowers its rating on Brightpoint (NASDAQ: CELL) from Buy to Neutral, both High-Risk, but raises its price target from $7.50 to $9 following the company's acquisition by Ingram Micro (NYSE: IM).
Citigroup notes, "Monday Brightpoint (CELL, Buy rated) announced it has entered a definitive agreement to be acquired by Ingram Micro (IM, not covered) for $9 per share with a transaction value of $840m (includes $190m of debt acquired). Brightpoint's shareholder's will vote in Q3 and pending regulatory approval we expect the transaction to close in Q4. … Given today's 67% stock price jump in Brightpoint shares and with the stock trading within 1% of the agreed upon acquisition price of $9 we are downgrading the stock from Buy to Neutral and our target price equals the $9 acquisition price as we do not see a bidding war or anticipate regulatory approval issues."
CELL closed at $8.83 on Monday.
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