PayPal's Board Reportedly Called $60.50 a Share Inadequate. The Stock Trades at $56.
PayPal's board wants more than $60.50 per share. But is the stock really worth that much?
Overview
There are now three public opinions about what PayPal (NASDAQ: PYPL) is worth. A buyout group says $60.50 per share. The market says about $56. And the average analyst price target says about $53 -- below not just the offer, but the stock's current price.
The newest of the three opinions belongs to PayPal's board, which reportedly views the $60.50-per-share cash offer from privately held payments company Stripe and private equity firm Advent International as inadequate, according to multiple reports. The bid valued the payments specialist at more than $53 billion. Notably, PayPal hasn't publicly responded to the proposal. Reports say board discussions have centered on whether the bid is high enough to warrant opening negotiations at all.
Details
For shareholders, that leaves an odd setup: a stock pinned between an offer above the market price and an analyst consensus below it. Each number is telling investors something different, and it's worth taking them one at a time.
Source
Originally published at www.fool.com.