UPDATE: Bank of America Moves to No Rating on Ancestry.com
Bank of America moved its rating on Ancestry.com (NASDAQ: ACOM) from Buy to No Rating as it believes the company no longer trades on fundamentals following a takeover announcement.
Bank of America noted, "This morning, Ancestry announced Permira has agreed to acquire Ancestry for $32/share in a cash transaction valued at $1.6bn. The acquisition price represents a 9.7% premium above last Friday's (October 19th) closing price of $29.18. Although the deal is still subject to shareholder approval and other closing conditions, we believe the acquisition will likely occur due to: 1) affiliates of Spectrum Equity (which own ~30% of total shares) have already approved the deal; and 2) Ancestry's Board of Directors have already unanimously approved the transaction."
Ancestry.com closed at $29.18 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Bank of America