by Christopher Freeburn | April 24, 2013 12:49 pm
Shares of Buckeye Technologies (NYSE:BKI) surged more than 25% in Wednesday trading after Georgia-Pacific said it would buy the company.
Georgia-Pacific announced that it would pay $37.50 a share to acquire the maker of specialty fibers, a premium of 25.3% over Buckeye’s prior closing price. Including debt assumed during the transaction, the deal is worth $1.5 billion, the Associated Press noted.
The acquisition must receive approval from regulators. Privately held Georgia-Pacific must also purchased at least 75% of Buckeye shares via a tender offer before the merger can be finalized.
Buckeye’s fibers are used in a diverse range of consumer and industrial products, including baby wipes, napkins and oil filters. The company had a workforce of roughly 1,200 and runs production facilities in Germany and the U.S.
Earlier this month, shares of Sprint (NYSE:S) jumped after Dish Network (NASDAQ:DISH) said it would outbid Japan’s Softbank (PINK:SFTBF) to acquire the wireless carrier for $25.5 billion.
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