AMC Stock Slides, Ups Offer in Carmike Deal to $1.2 Billion
NEW YORK (TheStreet) -- Shares of AMC Entertainment (AMC) - Get Report are down 2.71% to $29.77 this morning after the company agreed to a deal to acquire Carmike Cinemas (CKEC) valued at $1.2 billion, MarketWatch reports.
The deal, first proposed in March, would make AMC the largest movie-theater operator in the U.S.
A vote to approve the deal was postponed twice by Carmike shareholders over concerns that the sale price was too low.
The new transaction is about 10% higher than AMC's original $30-per share all-cash offer. AMC's offer is now valued at roughly $1.2 billion, consisting of $585 million in cash, $250 million in stock, and debt.
Shares of Carmike are down 1.38% to $30.70
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and notable return on equity. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: AMC