Encore Acquisitions Co. (EAC) vaults on acquisiton by Denbury Resources Inc. (DNR)
Denbury Resources Inc. (NYSE: DNR) stock tumbled on Monday, a day after the oil and gas producer announced its decision to acquire Encore Acquisition Co. (NYSE: EAC) for $2.64 billion in a cash and stock deal.
Encore Acquisition Co. (EAC) stock emerged as strong gainer on the street, as it was trading close to its 52 weeks closing high at $44.88 during afternoon trades on Monday, up by 21% from Friday's closing with strong volumes.
The uptrend in Encore Acquisition Co. (EAC) stock and fall in Denbury Resources Inc. (DNR) stock again gives a replication of earlier major acquisitions made in US in October, in which the acquired stocks have shot up, while the acquiring companies have seen a sell-off subsequent to such deals.
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