NEW YORK (TheStreet) -- Shares of Hill International (HIL) were gaining 29.9% to $5.08 on heavy trading volume on Monday morning after private equity firm DC Capital Partners offered to acquire the management services company.
In a letter sent to the company, DC Capital Partners offered to acquire Hill International for $5.50 a share. The price represents a 40.7% premium over the company's closing price on Friday, May 1.
DC Capital Partners said it is impressed with Hill International's recovery from its recent Libya liquidity predicament. "However, we remain concerned with the company's disproportionate exposure to the Middle East region," the firm said.
About 1.3 million shares of Hill International were traded by 10:22 a.m. Monday, above the company's average trading volume of about 127,000 shares a day.
TheStreet Ratings team rates HILL INTERNATIONAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HILL INTERNATIONAL INC (HIL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."