Babcock & Wilcox’s stock soars after confirming indication of buyout interest from its largest shareholder
Shares of Babcock & Wilcox Enterprises Inc. soared 16% in premarket trade Thursday, after the energy and environmental technologies company confirmed that it received a “non-binding indication of interest” from its largest shareholder, Steel Partners. The company said a potential buyout would value B&W shares between $3.00 to $3.50 each, which is 17% to 36% above Wednesday’s closing price of $2.57, and would give B&W a market capitalization of between $505.9 million to $590.2 million. Steel Partners owns 17.8% of B&W’s shares outstanding. B&W’s stock has tumbled 54.8% year to date through Wednesday, while the S&P 500 has gained 2.2%.