Takeover deals can be a signal of positive market sentiment, indicating that the acquiring company is confident in its growth prospects and is willing to invest in expanding its market share. Such deals often lead to an increase in stock prices as they indicate potential value creation and synergies for the acquiring company. Takeover deals may provide an opportunity for investors to capitalize on market inefficiencies and earn profits through arbitrage strategies, such as buying the target company’s stock at a discount to the offer price and profiting from the price convergence upon deal completion.
Here are three takeover targets for the week –
Creative Media & Community Trust Corporation – SYM: CMCT
Recent Price: $4.50
Takeover Action: Creative Media & Community Trust Corporation (CMCT) received an unsolicited non-binding takeover bid from Daniel Negari at a price equal to $8.88 per share in cash.
Description: Creative Media & Community Trust Corporation is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets).
Pardes Biosciences, Inc. – SYM: PRDS
Recent Price: $1.92
Takeover Action: According to a letter the investor wrote to the company’s board that was disclosed in a regulatory filing, Foresite Capital, which owns 27% of Pardes Biosciences (PRDS), is considering a potential acquisition of the shares of Pardes Biosciences, Inc. it does not already own.
Description: Pardes Biosciences, Inc., a clinical stage biopharmaceutical company, focuses on discovering, developing, and commercializing novel therapeutics to treat and prevent viral diseases. The company was incorporated in 2020 and is headquartered in Carlsbad, California.
Shockwave Medical, Inc. – SYM: SWAV
Recent Price: $287.18
Takeover Action: According to Bloomberg, Shockwave Medical (SWAV) is attracting takeover interest from Boston Scientific Corp. (BSX) as health-care dealmaking starts to rebound.
Description: ShockWave Medical, Inc., a medical device company, develops intravascular lithotripsy (IVL) technology for the treatment of calcified plaque in patients with peripheral and coronary vascular, and heart valve diseases in the United States and internationally. The company offers products for the treatment of peripheral artery disease (PAD), including M5 IVL catheter and M5+ IVL catheter, which are five-emitter catheters for use in our IVL system in medium-diameter vessels; S4 IVL catheter, a four-emitter catheter for use in IVL system in small-diameter vessels; and L6 IVL catheter, a six-emitter catheter for use in IVL System in large diameter vessels. It also provides product for the treatment of coronary artery disease, such as C2 IVL catheter and C2+IVL catheter that are two-emitter catheters for use in IVL system. It serves interventional cardiologists, vascular surgeons, and interventional radiologists through sales representatives and managers, and distributors. The company was incorporated in 2009 and is headquartered in Santa Clara, California.