Raymond James Group has bad case of SOUR GRAPESLOL when I read this today in the Globe and Mail. Guess I won't be taking any advice from them in the future. And calling the buyout surprising is pretty tacky too. Congrats to all for having more common sense than Raymond James.
Student Transportation was downgraded to "market perform" from "outperform" at Raymond James, which sees a higher takeover bid as unlikely.
Student Transportation announced late Tuesday that it has an agreement to be acquired by a group of investors led by Caisse de dpt et placement du Qubec for US$7.50 per share.
The deal represents a 27-per-cent premium to the 20-day volume weighted average price per common share on the Toronto Stock Exchange for the period ending Feb. 27, based on an exchange rate of $1.28 Canadian dollars per U.S. dollars, the company said.
Raymond James analyst Patrick Tyler Brown called the takeover announcement "rather surprising."
"We see limited opportunity for a topping bid," he said.
Student Transportation shares were up about 25 per cent at Wednesday's open.