Diamond Resorts' Stock Surges On WSJ Report Of Buyout Interest

Shares of Diamond Resorts International Inc. ran up 18% in premarket trade Wednesday, after The Wall Street Journal reported that Apollo Global Management was nearing a deal to buy the resort management company. The WSJ report, citing people familiar with the matter, said terms of the deal could not be learned, but said Diamond Resorts could fetch a price in the neighborhood of $2 billion, which would be about 25% above the current market valuation. The company had announced in February that it had formed a committee to explore strategic alternatives. The stock had declined 5.6% year to date through Tuesday, while the S&P 500 had slipped 0.4%.