Mill Road Buyout Bid Boosts Skullcandy Inc (SKUL)

Skullcandy Inc (SKUL) is trading higher after the headphone firm received a new buyout offer

by Alex Eppstein

Published on Jul 29, 2016 at 11:29 AM
Updated on Jul 29, 2016 at 11:29 AM

Skullcandy Inc (NASDAQ:SKUL) stock is having a strong morning, after the headphone maker said the buyout offer from Mill Road Capital is superior to a rival proposal from Incipio -- which it now intends to terminate. At last check, SKUL has tacked on 1.5% to trade at $6.12, putting it within striking distance of a 2016 closing high.

Of course, this could actually come as a disappointment to traders, who may have been banking on a more dramatic bidding war that has yet to materialize. After all, SKUL stock has been hovering above Mill Road's all-cash bid of $6.05 per share for the past month. By contrast, the previously accepted offer from Incipio registered at $5.75 per share.

That said, a bidding war could still come to fruition. Incipio has until 11:59 p.m. ET next Tuesday, Aug. 2, to provide Skullcandy Inc (NASDAQ:SKUL) with a counteroffer. Plus, less than two months ago, it appeared SKUL founder Rick Alden was jockeying to take the company private.

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