Titanium Metals Surges 40% on Takeover
Shareholders of Jefferies (NYSE: JEF) may have enjoyed their gains on Monday, as Leucadia National's (NYSE: LUK) purchase of the bank dominated the financial news. However, the gains seen in Jefferies were relatively modest when compared to the gains in Titanium Metals (NYSE: TIE).
Shares of Titanium Metals traded up over 40 percent after Precision Castparts (NYSE: PCP) acquired the company, in a deal worth $16.50 per share.
For its part, Precision Castparts (NYSE: PCP) saw its own rally, as shares moved up about five percent. Precision Castparts said the deal would be immediately accretive to its earnings.
Titanium Metals is a lead producer of titanium, with much of its operations aimed at the aerospace industry.
Analysts at Sterne Agee saw the deal as positive. They said that, in acquiring Titanium Metals, Precision Castparts would be able to exploit significant synergies -- a “needle mover.”
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