A source familiar to TheStreet.com said Diamond Resorts International Inc DRII will likely go private following a strategic review. The source pointed to significant insider ownership and management's inclination for leveraged buyouts as reasons to expect the change.
"The source believes Diamond could be taken private for $32 to $35 per share, for a total deal value of $2.23 billion to $2.44 billion," wrote TheStreet's Laura Berman.
TheStreet's source says that after about two months, the company will complete its review and would announce potential privatization then.
When the company announced its review February 25, it noted that there was "significant dislocation" between the value of the company's stock and its intrinsic value. The company has lost about 35 percent of its share price since last March.
The company's stock has spiked and sunk in quick succession with the news, but was up about 7 percent at time of writing.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
