Weight Watchers is going bananas.
Following a New York Post report Sunday about an impeding takeover, Weight Watchers stock is up nearly 30% in pre-market trading on Monday.
The Post, quoting three sources familiar with the deal, says that an activist hedge fund is about to make an offer to investment firm Invus Group, Weight Watchers’ majority owner.
Invus Group owns nearly 52% of the company through its Artal Group fund.
Weight Watchers stock crashed earlier this year, losing as much as 86% of its value since December. Some on Wall Street attributed the company’s troubles to the introduction of wearables and free weight loss apps.
According to The Post, Weight Watchers is still the world’s top weight-loss brand, with more than 36,000 meetings a week.
Maybe this is why the undisclosed hedge fund will offer “perhaps double the $US4.09 latest closing share price.”
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