NEW YORK (TheStreet) -- Shares of GrafTech International (GTI) were gaining 2% to $5.05 on heavy trading volume Monday after Brookfield Asset Management (BAM) announced plans to acquire the industrial electrical equipment company in a tender offer.
The asset management company will buy GrafTech for $5.05 a share, representing about a 2% premium over the company's Friday closing price.
Brookfield agreed to buy $150 million of convertible preferred shares of GrafTech in a private offering earlier in May, according to the Associated Press.
"The company believes that Brookfield has an exceptional track record sponsoring public companies in difficult underlying market conditions, including significant knowledge and experience in steel, mining and metals, and other industrial sectors," GrafTech said.
About 4.5 million shares of Graftech were traded by 11:50 a.m. Monday, above the company's average trading volume of about 1 million shares a day.
TheStreet Ratings team rates GRAFTECH INTERNATIONAL LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRAFTECH INTERNATIONAL LTD (GTI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."