Intermex Sinks 13% After Western Union Flags Nov. 10 Deal Termination Right
IMXI is trading near its 52-week low of $8.01 (10% below the low).
Summary
Western Union said on its Q3 call that Nov. 10 is the outside date in the merger agreement, after which either party can walk away from the $16.00-per-share cash deal. Intermex fell 13% in after-hours trading on the news. The sticking point is California: the DFPI suspended the approval extension in August, and CEO Devin McGranahan said Western Union just received fresh feedback from the regulator and is working to find an acceptable path forward. This follows the 8-K filed Nov. 3 noting the HSR waiting period expired Nov. 2 — federal antitrust is cleared, so California is the last gate. With IMXI trading near its 52-week low, the market is now pricing real deal-break risk rather than just delay. Watch Nov. 10: either an extension or a termination notice decides whether the $16.00 deal holds. Western Union shares rose 4% on its Q3 results.
At the time of this announcement, IMXI was trading at $7.20 on NASDAQ in the Finance sector, with a market capitalization of approximately $251.1M. The 52-week trading range was $8.01 to $15.95. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.