Why Alleghany Shares Are Surging Today

Why Alleghany Shares Are Surging Today

Alleghany Corp Y shares are trading significantly higher Monday morning after Berkshire Hathaway Inc (NYSE: BRK-A) announced it would acquire the company.

Under the terms of the agreement, Berkshire will acquire all outstanding shares of Alleghany for $848.02 per share in cash, representing a total equity value of about $11.6 billion.

"Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years," said Warren Buffett, chairman and CEO of Berkshire Hathaway.

The transaction is expected to close in the fourth quarter. Alleghany will continue to operate as an independent subsidiary of Berkshire after closing.

See Also: Why Boeing Shares Are Falling Today

Y 52-Week Range: $585.10 - $737.89

Alleghany shares were up 24.9% at $844.90 at time of publication.

Photo: Fortune Live Media from Flickr.

Posted In: Warren Buffettwhy it's movingM&AMoversTrading Ideas

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