NEW YORK (TheStreet) -- Shares of Ashford Hospitality Prime (AHP) are spiking by 31.98% to $14.94 on heavy trading volume late Wednesday morning, after the Weisman Group offered to purchase the company for roughly $1.48 billion, including debt.
Weisman would pay $20.25 per share in cash for the common shares and about $25 per share for preferred stock, for a total equity value of roughly $735 million, according to a regulatory filing, Bloomberg reports.
The bid for common shares represents a 79% premium to Tuesday's closing price of $11.32.
Ashford will carefully review and evaluate the proposal, according to a company statement.
Weisman had a 4.9% stake in the U.S hotel owner as of April 21, according to Bloomberg data. At least two other top 10 holders support the bid, sources told Bloomberg.
About 1.82 million shares of Ashford have been traded so far today, well above its average trading volume of roughly 209,929 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Ashford Hospitality's weaknesses include its disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: AHP
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 article's author.