Why Delphi Technologies is Soaring Today
Shares of U.K.-based auto-industry supplier Delphi Technologies (NYSE: DLPH) soared on Tuesday, after the company announced that it has agreed to be acquired by U.S. rival BorgWarner (NYSE: BWA) at a substantial premium.
As of 1 p.m. EST, Delphi Technologies' shares were trading up about 60% from Monday's closing price.
Under the deal, Michigan-based BorgWarner will acquire Delphi Technologies in an all-stock deal that puts Delphi's enterprise value at $3.3 billion. Delphi shareholders will receive 0.4534 shares of BorgWarner stock for each Delphi share they hold -- a valuation that implies a purchase price of $17.39 per share.
Source Fool.com
