Invesco (NYSE:IVZ) news for Friday includes the stock soaring higher following the revelation of a stake from Trian AM Holdco.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Train has acquired a total of 45,457,427 shares of IVZ stock. This news means it has a 9.9% stake in the investment management company Invesco.
Train’s stake in Invesco comes in two parts. The first is 36,739,343 shares directly owned by the company that makes up an 8% stake in IVZ. The second comes in the form of 8,718,084 shares underlying options, which represents a 1.9% stake in the company.
Trian AM Holdco notes that it spent roughly $394.6 million when including commissions to acquire the 36.7 million shares of IVZ stock. The company notes that it acquired the other 8.7 million shares via ” a series of privately negotiated back-to-back call and put transactions with a financial institution.” It says the strikethrough price of this comes to about $99 million.
So why exactly did Trian take out such a large stake in IVZ stock? The company says in the SEC filing that it sees the stock as undervalued and an attractive investment. It also doesn’t rule out acquiring additional shares of the stock in the future.
Invesco stock has been subject to heavy trading on Friday following the Train news. 12.85 million shares have changed hands as of Friday afternoon. For comparison, the average daily volume for IVZ stock is 6.24 million shares.
IVZ stock was up 5.3% as of Friday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.