Phoenix Companies's Stock Nearly Triples After Buyout Agreement

Shares of Phoenix Companies Inc. nearly tripled in premarket trade Tuesday, after the insurer agreed to be acquired by Nassau Reinsurance Group Holdings for $217.2 million in cash. Under terms of the deal, Nassau will pay $37.50 for each Phoenix share outstanding, representing a 188% premium to Monday's closing price of $13.03. The acquisition is expected to be completed in early 2016, after which Nassau will contribute $100 million in new equity to improve Phoenix's balance sheet and provide working capital. The stock, currently trading at $34.98, is set to open at the highest price seen since April 30. Through Monday, the stock had plunged 81% year to date, while the S&P 500 had lost 8.6%.