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Investing.com -- Shares of bluebird bio, Inc. (NASDAQ:BLUE) surged by 50% in pre-open trading Wednesday following the announcement of an amended buyout agreement with private equity firms Carlyle (NASDAQ:CG) and SK Capital Partners (WA:CPAP), LP. The revised deal now offers bluebird stockholders an option to receive either the original $3.00 per share plus a contingent value right (CVR) of $6.84 per share or a higher immediate cash payout of $5.00 per share with no CVR. This new development provides an alternative to investors who prefer upfront cash over the potential future milestone-based payment.
The bluebird board of directors has unanimously recommended that shareholders accept the updated offer, emphasizing that it represents the only viable option to realize value from their investment. The urgency of the situation is underscored by bluebird’s warning of a potential default on its loan agreements with Hercules Capital (NYSE:HTGC), which could leave stockholders with nothing in the event of bankruptcy or liquidation.
The tender offer’s expiration has been extended to just after midnight on May 29, 2025, allowing shareholders additional time to consider their options. As of the close of business on May 13, approximately 2,281,724 shares had already been tendered in favor of the offer. Shareholders who had previously tendered shares at the original price point are not required to take any further action to maintain their position, while those wishing to opt for the new $5.00 per share offer must withdraw and re-tender their shares with the updated election.
The amended agreement follows the receipt of all necessary regulatory approvals for the transaction, which was initially announced on May 5, 2025. Carlyle and SK Capital anticipate a swift completion of the transaction once the tender offer concludes successfully.
Investors reacted positively to the news, reflected in the substantial uptick in bluebird’s stock value. The transaction, if successfully executed, is expected to provide immediate liquidity to bluebird’s shareholders, many of whom might be seeking certainty in the face of the company’s financial challenges.
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