Nortek Inc (NTK) has agreed to a $2.8 billion buyout agreement
Nortek Inc (NASDAQ:NTK) is laying the smack down on short sellers, after the ventilation company
reached a merger agreement overnight. Specifically, Melrose Industries agreed to buy the firm for $2.8 billion, or $86 per share, sending NTK stock 39.5% higher to trade at $87.16.
With the shares gapping into territory not charted since August, short sellers are likely feeling the heat. During the most recent two-week reporting period, short interest on NTK exploded 73.7% higher, and one-tenth of the stock's float is now dedicated to short interest. In fact, at the equity's typical rate of trading, it would take one week for short sellers to cover their bearish bets.
As it currently stands, Nortek Inc (NASDAQ:NTK) is one of the top percentage gainers on the Nasdaq. In climbing up the charts, the stock is defying the broader "Brexit"-related headwinds that have pressured stocks lower, both at home and abroad. This is more of the same for NTK, which was already up more than 43% year-to-date heading into today.
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