Why Advanced Accelerator Applications SA Acquired a Higher Price Today
Advanced Accelerator Applications (NASDAQ: AAAP) is up 10.5% at 11:42 a.m. EDT after announcing that it was being acquired by Novartis (NYSE: NVS) for approximately $3.9 billion.
Advanced Accelerator Applications (AAA) has a somewhat non-traditional share structure in that its American Depositary Shares (ADS) that trade on the NASDAQ represent two of its ordinary shares, so the takeout price is $82 per ADS, which most U.S. investors would own, which is equivalent to $41 per ordinary share.
Looking at the ADSs, $82 is only a 12% premium on Friday's closing price, but rumors of the deal have been in the wind for a month. Based on the 30 volume-weighted trading days before Bloomberg broke the news, the companies were considering tying the knot, the takeout price is a solid 47% premium.
Source: Fool.com
