Toolmaker Stanley Works NYSE:SWK will acquire Black & Decker NYSE:BDK for 3.43 billion dollars
Submitted by vinny on Tue, 11/03/2009 - 08:33.
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Toolmaker Stanley Works will acquire Black & Decker in a deal valued at about $3.43 billion. This acquisition deal will create an $8.4 billion company.
If you are holding Stanley Works Stocks (NYSE:SWK) or Black & Decker Stocks (NYSE:BDK) then you must note that, Under the terms of the acquisition, announced Black & Decker shareholders(BDK) will receive 1.275 Stanley shares for each Black & Decker share they own. The companies announced that his deal represents a 22.1% premium to Black & Decker's closing stock price Friday.
If you are holding Black & Decker stock, BDK stock will cross $60 and might go above $65 during intra-day trading. SWK stock might trade in the range of $43-$48 with valuations moving out to BDK stock.
BDK is a great stock to buy on tuesday but buy BDK stock in early trading as it will explode later in the day.
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