Citi Pushes Intermex Deal Close to Nov. 10, Cuts WU Target on Regulatory Delay
IMXI is trading near its 52-week low of $10.355 (2.5% above the low) on elevated volume (2.2× avg).
Summary
Citi now expects the Western Union acquisition of Intermex to close by Nov. 10, later than the original September assumption, because a California regulator is still reviewing the deal. The analyst cut Western Union's price target to $6 from $7, citing increased deal uncertainty. Intermex shares fell 8% on Thursday, the third straight day of declines, and are down 25% over two weeks, trading near $10.60 versus the $16 cash offer. The wide spread reflects investor skepticism about closing. Watch for any update from the California regulator or a revised merger agreement.
At the time of this announcement, IMXI was trading at $10.61 on NASDAQ in the Finance sector, with a market capitalization of approximately $320.5M. The 52-week trading range was $10.36 to $15.95. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.