Shares of aerospace parts maker Arconic Inc. (ARNC) are on the move amid word of the company's potential acquisition by private equity giant Apollo Global Management.
Arconic, which was up 3.61% Tuesday to close at $20.07, would fetch $21 to $22 a share under the deal, which is expected to be announced this week and involves a 10% premium, The Wall Street Journal reports. Apollo would pay more than $10 billion for Arconic, previously Alcoa before the split up of the aluminum company in 2016, the paper reports.
Arconic's stock price has been trending upward, with the company having been on the sell block for months now. Blackstone Group LP and Carlyle Group also both competed to buy the firm, the WSJ reports.
Arconic beat earnings estimates for the past two quarters, on average by 17.13%, according to Zacks. Arconic reported earnings of 32 cents a share for the most recent quarter, compared to estimates of 30 cents a share. For the previous quarter, Arconic came in at 37 cents a share, compared to the consensus estimate of 29 cents a share. That represents a 27.59% earnings surprise, according to Zacks.