StoneCo surges on report of hiring advisers for strategic alternatives
Dec. 23, 2021 2:07 PM ETStoneCo Ltd. (STNE)By: Joshua Fineman, SA News Editor34 Comments
- Brazilian fintech StoneCo (NASDAQ:STNE) jumped 14% after a report that the company hired a bank and a law firm to consider strategic alternatives.
- StoneCo hired JPMorgan and a law firm to help evaluate strategic alternatives, according to a Brazil Journal story. StoneCO retained law firm Galdino & Coelho, known for its practice of corporate restructuring and dispute resolution.
- The Brazilian publication (Google translated from Portuguese) said the share jump is being caused by traders speculating about a delisting or sale of the company.
- Earlier, StoneCo cut to Neutral at Credit Suisse on poor earnings momentum.
- Bloomberg earlier flagged the Brazil Journal report.
- Recall August 2020, StoneCo agreed to combine its Brazilian operations with Linx.
- Keep in mind that Seeking Alpha flags STNE at risk of performing badly when compared with its peers.