Morgan Keegan has issued a report on HCP Inc. HCP issuing 30 million share to finance the acquisition of HCR Manor Care.
According to the report, "HCP issued 30 million shares, upsized from 24 million, at $36.90 yesterday. The company will use the proceeds to help finance its $6.1 billion acquisition of HCR Manor Care. Part of the proceeds will be used in lieu of 25.7 million HCP shares for $852 million of consideration. We had expected this, given that HCP shares had appreciated over 11%. This appreciation can be viewed as reducing HCP's purchase price, financing the acquisition of 9.9% of the operating company, or adding to working capital."
HCP has an Outperform Rating and a $43.00 Price Target.
HCP closed yesterday at $36.85.
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