Overseas Shipbuilding (NYSE:OSG) Stock Makes a Big Move: Will The Rally Continue?
The possibility of a takeover almost always leads to a rally in the stock of a company and that is what happened to the Overseas Shipbuilding Group (NYSE:OSG) stock this past Friday.
The stock soared by as much as 37% last Friday after the company announced that Saltchuk expressed an interest in acquiring it. The company, which is involved in delivering energy transportation services for petroleum and natural gas products, announced that Saltchuk sent in a proposal to acquire all the outstanding and issued Overseas Shipbuilding shares. Saltchuk offered a price of $3 per share to the company, which was considerably higher than the Thursday closing price of $1.80 a share.
Saltchuk is privately owned company based out of Seattle which is involved in providing distribution and transportation services. In a statement, Saltchuk noted that the very nature of the business cycles of the shipping business makes it better for any business in the sector to be owned privately.
The offer has generated considerable excitement among investors and it might be a good move for investors to keep an eye on this stock over the coming days. It now remains to be seen if the stock comes into focus among investors today.
Market Reaction:
On Friday, OSG stock surged 37% at $2.88 with more than 18.76 million shares, compared to its average volume of 878k shares. The stock had moved within a range of $2.7600 – 3.0400 after opening the trade at $2.88. Over the past 52-week, the stock has been trading within a range of $1.8200 – 3.0400.
