Why Advanced Accelerator Application SA Stock Jumped Higher Today
Shares of Advanced Accelerator Application (NASDAQ: AAAP) are up 12% as of 11:23 a.m. EDT after Bloomberg reported that Novartis (NYSE: NVS) is considering acquiring the radiopharmaceutical company. If it goes through, the buyout would be a welcome sight in a rather dismal year for biotech acquisitions.
As typically happens with these things, Bloomberg cites unidentified "people familiar with the matter," with both companies declining to comment. Nevertheless, the fact that Bloomberg has people -- as opposed to a person -- willing to talk gives the idea a little more validity. The people said the companies have actually held talks, implying that this is more than just a fleeting idea for Novartis.
When information about mergers and acquisitions is leaked to the media, it's a good idea to try and figure out why that might happen. It's possible that the person has gone rogue, but with multiple people willing to talk, it's more likely that one of the companies -- likely through their investment bankers -- has decided that it's helpful to make the information public.
Source: Fool.com
