MSCI's Stock Rockets To Record High After Report Of S&P Global Buyout Bid

By Tomi Kilgore Markets MarketWatch Pulse

Shares of MSCI Inc. rocketed 11% to a record high Wednesday, after reports that the market index compiler has received, and rejected, a buyout bid by S&P Global Inc. because it was too low. The U.K.'s Evening Standard reported Wednesday, citing City sources, that S&P Global approached MSCI with a buyout bid of $120 a share, which was 25% above Tuesday's closing price of $96.33, and would imply a market capitalization of about $10.9 billion. But the company and its major shareholders are holding out for a $130-per-share bid, Evening Standard reported, which would value MSCI at about $11.8 billion. S&P Global's stock shed 1.3% in morning trade. It is believed that there are several parties interested in buying MSCI, including exchange houses and private-equity firms, the report said. MSCI's stock has run up 55% over the past 12 months, while S&P Global shares have rallied 40% and the S&P 500 has climbed 18%.

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