Capital One Financial To Acquire Discover, Joins SSR Mining And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session
Portfolio Pulse from Avi Kapoor
Capital One Financial Corporation (NYSE:COF) announced its plans to acquire Discover Financial Services (NYSE:DFS) in a $35.3 billion all-stock transaction, causing COF shares to fall 5.8% in pre-market trading. Other stocks like MicroCloud Hologram Inc. (NASDAQ:HOLO), Tevogen Bio Holdings Inc. (NASDAQ:TVGN), SSR Mining Inc. (NASDAQ:SSRM), Sasol Limited (NYSE:SSL), Nano-X Imaging Ltd. (NASDAQ:NNOX), C4 Therapeutics, Inc. (NASDAQ:CCCC), and Bitfarms Ltd. (NASDAQ:BITF) also recorded losses in pre-market trading for various reasons.
February 20, 2024 | 10:11 am
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NEGATIVE IMPACT
Capital One Financial shares fell 5.8% in pre-market trading after announcing the acquisition of Discover Financial Services.
The announcement of a significant acquisition typically leads to uncertainty and immediate negative reaction in the acquirer's stock price due to concerns over the cost and integration challenges.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Discover Financial Services is to be acquired by Capital One Financial Corporation in a $35.3 billion all-stock transaction.
The target company in an acquisition often sees a positive short-term price movement due to the premium typically paid over the current stock price in such transactions.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100