Veris Residential (NYSE:VRE) stock is rising higher on Friday after the company received a buyout offer from Kushner Companies.
That offer, which was unsolicited, has Kushner Companies seeking to externally manage Veris. If that isn’t acceptable, however, Kushner wants to acquire the company for $16 per share. That represents an almost 29% premium over the closing price on Thursday.
Veris Residential notes that its Board of Directors is going over the offer from Kushner Companies. The board also in talks with financial and legal advisors about the offering. The company says it will respond to the offer in due time.
What This Means for VRE Stock
The immediate effect here is that investors in Veris Residential are seeing gains today. Interest in the deal has sparked heavy trading, which has some 1.4 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is about 532,000 shares.
In the long term, this offer could result in a payout for holders of VRE stock. The $16 per share offer represents a nice premium and is a price the stock hasn’t seen since April. On the flip side, however, Veris’ management may see the offer as undervalued and hold out for a better deal.
VRE stock is up 18% as of Friday morning but down 21% since the start of the year.
Investors looking for all of the hottest stock market news today are in luck!
InvestorPlace is home to all of the stock market news traders need to know about for Friday! A few examples include why shares of Immunic (NASDAQ:IMUX), Revlon (NYSE:REV) and Verizon (NYSE:VZ) stock moving today. You can get up to speed on all of this news at the following links!
More Friday Stock Market News
- Why Is Immunic (IMUX) Stock Down 76% Today?
- Dear Revlon (REV) Stock Fans, Prepare for Delisting
- Verizon (VZ) Stock Slumps Despite Earnings Beat
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
