Bluegreen Stock Soars After Announcement Of Takeover

Stock in Boca Raton-based Bluegreen Corporation has risen since it announced Diamond Resorts International may acquire it for about $500 million dollars.

The companies last week signed a non-binding letter of intent that gives Diamond Resorts an exclusive right of negotiation through Sept. 15, during which time it will conduct more extensive due diligence.

Diamond Resorts offered $15 per share for Bluegreen, which amounts to about a half billion dollars.

During the past 52 weeks, shares in Bluegreen have fluctuated between $5.91 and $12.53 per share. Late last week, the store rose to $11.92 from the previous Monday’s close of $5.48.

Based in Las Vegas, Diamond Resorts is one of the largest vacation ownership companies in the world with 110 branded and affiliated resorts in 14 countries

Alan B. Levan, chairman of Bluegreen’s Board of Directors said the firm “had previously announced we were positioning the company with a view toward pursuing strategic alternatives at some point in the next three to five years. When Diamond presented our board with this unsolicited, attractive offer, we believed that it was in the best interest of our shareholders to pursue this transaction at this time.”

Bluegreen, headquartered in Boca Raton, operates resorts and residential community businesses. It currently employs more than 6,000 people, said company officials.


Source: http://www.bocanews.com/