Avaya Holdings Corp AVYA:NYSE

Last Price$12.53NYSE Closing Price as of 6:30PM ET 10/15/19
NYSE 15-minute delayed Bid/Ask Quotes
Today's Change-0.07(0.56%)
Bid (Size)$12.30 (10)
Ask (Size)$12.83 (13)
Day Low / High$12.48 - 12.85
Volume2.2 M

Avaya Surges 11% on Speculation of Rival Buyout Offer From Clayton, Dubilier & Rice

2:51PM ET 8/20/2019 MT Newswires
Shares of Avaya Holdings Corp. (AVYA) jumped more than 11% intraday to $13.84 after it emerged the company was looking into a buyout offer from a private-equity player Clayton, Dubilier & Rice (CD&R) despite ongoing media speculation that Avaya was close to accepting a bid from Canada's Mitel Networks.

A spokesman for Avaya was cited as saying in a report from Barron's the company, as a matter of policy, did not comment on rumor and speculation. Clayton, Dubilier & Rice also didn't immediately respond to a request for comment from Barron's.

Avaya's sale to CD&R would allow all its shareholders to cash out and values the company at a significant premium to where its shares are trading, sources were cited as saying in a separate report from Reuters.

The company's debt pile of $3.2 billion and its challenging business outlook have made a leveraged buyout difficult for many private equity firms, the news report added.

On Aug. 13, Avaya reported a fiscal Q3 loss of $5.70 per diluted share, wider than a loss of $0.80 per share a year ago. It expects fiscal 2019 revenue in the range of $2.90 billion to $2.92 billion, which is below the $2.94 billion average analyst estimate compiled by Capital IQ.

Despite the jump in its share price, Avaya still traded close to the bottom end of its 52-week price range of $10.23 - $23.40.

Price: 13.87, Change: +1.44, Percent Change: +11.58