For a while, it looked like TravelCenters of America (NASDAQ:TA) was on track to be sold to BP (NYSE:BP). A deal valued at $1.3 billion was all set to go…until an unnamed third-party unexpectedly swooped in to make a better offer. That unexpected jolt of popularity was enough to send TravelCenters up slightly in Thursday’s trading.
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Dubbed “Party G,” TravelCenters’ new suitor was ready to offer $92 per share to purchase the entire company, reports note. With TravelCenters’ share price around $86, even after today’s slight bump up, that represented a fairly healthy premium. Party G had financing largely ready to go, featuring a combination of ready cash, lines of credit, and external financing.
The board of directors at TravelCenters, however, was not. Despite the expanded premium Party G’s offer represented, the board believed that BP’s buyout offer was superior. After all, Party G’s offer was going to require “significant” third-party financing, reports noted. With financing markets shaky at best, it was unclear if Party G could actually get the money together to make the deal happen. BP, meanwhile, was a lot more ready to go than Party G, and no “extra 30 days” was required.
However this story plays out, though, hedge funds are very much pleased with TravelCenters in general. Hedge fund confidence is currently considered Very Positive, as they’ve added to their positions for the third consecutive quarter. Indeed, they picked up an extra 76,800 shares in the last quarter alone.
