Why LKQ Stock Just Jumped 10%
Automotive parts supplier LKQ (NASDAQ: LKQ) has had a rough year, underperforming the S&P 500 by a good 15 percentage points over the past 12 months. It's lucky for shareholders, then, that a white knight is riding to their rescue this morning -- and helping to lift LKQ stock by 10.4% as of 12:50 p.m. EDT.
Who is said chevalier? According to a Schedule 13D filing with the Securities and Exchange Commission this morning, it's activist investor Jeffrey Ubben's ValueAct Capital, which disclosed today that it's purchased some 16 million shares of LKQ to take a 5.2% stake in the company. It hopes to parlay that into an ability to strategize with LKQ management about improving the company's capital allocation and mergers and acquisitions (M&A) strategy.
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Source Fool.com
