Why Goodyear Stock Is Sharply Higher Today
Shares of Goodyear Tire & Rubber (NASDAQ: GT) were trading sharply higher on Monday after the company announced it will acquire rival Cooper Tire (NYSE: CTB) in a friendly cash-and-stock deal.
It's no surprise that Cooper Tire's stock soared on the news as Goodyear is acquiring Cooper at a 24% premium to Friday's closing price. It's somewhat unusual for an acquirer's stock to surge in these situations, but auto investors clearly like the deal.
As of 1:45 p.m. EST, Goodyear's stock was up about 18.8% from Friday's closing price, and Cooper Tire's was up about 29.8%.
Source Fool.com
