Lincare Could Be Bought For $3.4 Billion
Lincare Holdings Inc. (NASDAQ:LNCR), a U.S.-based oxygen provider, may be the subject of a $3.4 billion buyout, with Germany's Linde AG leading the bidding, Reuters reports.
According to the news source, France's Air Liquide SA and an anonymous private equity firm may also place bids on the company. The news of the story, which was broken by a Financial Times Alphaville blog, sent shares of Lincare soaring by 31 percent, and also led to a busy day on the trading floor, as it prompted a buzz of call options trading on the stock.
"Investors took positions in July and August call options on hopes that the stock would see additional gains if the buyout speculation is true," Frederic Ruffy, options strategist at WhatsTrading.com, said.
The media outlet stated that option volume on Lincare was 13.5 times the average daily levels.
According to the Tampa Bay Business Journal, shares of Lincare were trading at $30.24 per share on Wednesday, up nearly 20 percent, or $5.00, compared with the previous session.
In addition to merger and acquisition activity, insider trading reports can greatly influence investment decisions.
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