Pitney Bowes (PBI.US), commerce-solutions provider, jumped over 10% during today’s US session. Investors rushed to buy its shares after private equity firm Thoma Bravo said it will buy Stamps.com (STMP.US) - the rival of Pitney Bowes.
Shares of Stamps.com (STMP.US) are soaring as the PE firm will pay $330 cash for each share in a $6.6 billion takeover. Therefore, the stock spiked more than 60%, climbing near the $330 mark.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appInterestingly, Pitney Bowes stocks jumped as well - market participants clearly consider Stamps.com takeover as positive for Pitney Bowes company, possibly due to hopes of lower competition or speculation that the company will be taken over in the future as well.
The technicals of Pitney Bowes (PBI.US) stock look quite interesting. Yesterday its shares tested an upward trendline, but the price managed to bounce off. Therefore, one cannot rule out that today’s impulse is also associated with the technicals. However, bulls were not able to smash through the $10 area, where 2 previous local highs may be found. According to technical analysis, it is possible that a breakout will occur in the coming days (in either direction) so it may be worth to watch the ongoing situation on the chart. Source: xStation5
