Shares of Angie's List Inc. soared 55% in premarket trade Tuesday toward a 4 1/2-month high, after the home services website agreed to be acquired by IAC Corp. in a deal that valued Angie's List at about $505 million. The stock changed hands at $9.11, or 7.2% above the per-share buyout bid of $8.50. The bid of $8.50 a share represent's a 44% premium to Monday's closing price of $5.89, but is 35% below the Nov. 17, 2011 initial-public-offering price of $13, and is less than a third of the July 5, 2013 record closing price of $28. No less than three law firms announced Tuesday investigations into the sale of Angie's List, to question whether the company's board breached its fiduciary responsibility by agreeing to sell the company at that price. Meanwhile, Susquehanna Financial analyst Shyam Patil said he believed the deal was "positive" for IAC, especially since synergies could total $100 million to $250 million annualized by the end of 2018. Angie's List's stock had tumbled 28% year to date through Monday, while IAC shares had run up 30% and the S&P 500 had rallied 6.7%.
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