Shanda Games (GAME +10.8%) has received a non-binding going-private proposal letter from parent Shanda Interactive and an affiliate of Chinese investment firm Primavera Capital. The offer, meant to be financed through a combo of equity and debt, values Shanda Games at $1.9B, or $6.90/share. (PR)
Shanda's board is evaluating the offer; the would-be acquirers already own 76.2% of the company.
Though up sharply, shares still trade 9% below the offer price, which suggests a fair amount of investor skepticism exists. Peer Giant Interactive (GA +1.1%) received a going private offer in November. Giant's shares still trade 7% below their offer price.