Published on: 2015-06-24 21:02:16 - in Money Category
MSO stock sells at a discount
On Monday this week traders woke up with the shocking news that the domestic diva Martha Stewart was selling her Martha Stewart Living Omnimedia(MSO) to Sequential Brands at $6.15 a share which is equivalent to $353 million. Earlier on speculators on Wall Street had forecast a bid of around $8 to $9 per share which which was way over the current market price of $6.98 by Fridays close.
Of course many people anticipated to make a lot of money. This ultimately led to a fall of about 14% per share for MSO. Though this is the case, the deal still went with a 'go shop' clause which indicates that MSO can still entertain offers from other bidders as long as it is higher. The 'go shop' offer goes for 30 days before it expires. Previously Stewart had super voting shares which allowed her to have a 90% voting power which has been reneged with the deal.
The company has been running as an independent publicly traded company and will end Stewart's 18 year streak at the helm of the retailing and publishing company.