Why NCR Stock Jumped on Tuesday
Shares of NCR (NYSE: NCR) rose as much as 15.5% on Tuesday. As of 12:15 p.m. ET, the stock was up about 13%.
The sharp move higher followed a report from The Wall Street Journal stating that private-equity firm Veritas Capital was in talks with the information technology company about potentially buying it out. The talks, according to WSJ's unnamed sources who are "familiar with the matter," are allegedly exclusive.
Investors, however, shouldn't count on the deal closing. Not only does it reportedly involve a significant amount of leverage -- increasing the odds of something going wrong compared to an all-cash agreement -- but the Journal said the deal could be weeks away from closing (if it does at all).
Source Fool.com
