QXO Inc.(QXO) Soars 21% W/W on GMS Bid
QXO, Inc. (NYSE:QXO) is one of the .
QXO saw its share prices jump by 21 percent to end Friday's trading at $23.79 versus the $19.66 a week earlier, with investor sentiment bolstered by its proposed acquisition of building products distributor GMS Inc. (NYSE:GMS) for $5 billion.
In a statement late last week, QXO, Inc. (NYSE:QXO) said it sent a proposal to GMS Inc.'s (NYSE:GMS) president and CEO to acquire all of the latter's outstanding shares at a price of $95.20 for a total of $5 billion.
The amount represents a 27-percent premium over GMS Inc.'s (NYSE:GMS) 60-day volume-weighted average price of $74.82.
Brad Jacob, chairman and CEO of QXO, Inc. (NYSE:QXO), said that its all-cash proposal will deliver immediate and certain value to GMS shareholders at a meaningful premium.
'We believe this is a compelling opportunity for GMS investors to realize the full value of their shares in a single, decisive transaction,' he noted.
A Home improvement store aisle with multiple types of building products on display.
QXO, Inc. (NYSE:QXO) tapped Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC as its financial advisors, while Paul, Weiss, Rifkind, Wharton & Garrison LLP will act as its legal counsel.
While we acknowledge the potential of QXO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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