Consolidated Communications jumps 18% as Searchlight weighs acquisition

peterschreiber.media/iStock via Getty Images

• Consolidated Communications (NASDAQ:CNSL) is bouncing back Tuesday, up 17.6%, as Searchlight Capital Partners considers a further buy-in to the company - including the prospect of a full acquisition.
• An amended SEC filing from Searchlight says it intends to consider making open-market purchases of Consolidated stock - and it will "evaluate the possibility of a further investment in or full acquisition" of the company.
• Searchlight has an existing 34.6% stake.
• Volume in Consolidated is running about 57% ahead of daily average, with some 616,000 shares having changed hands so far.
• Meanwhile, Consolidated stock had dropped 9.4% on Monday, part of a decline of nearly 36% since the company reported a slight dip in revenues for its fourth-quarter earnings. (See CNSL's one-month chart vs. the market here.)

Comments

[2022 Hedge]

I do think searchlight has already assessed the prospect of a majority position as well as an offer for all shares.

Private equity likes Conṭrol, and searchlight are not amateurs.

They do not want the share price dropping 30% because an analyst at citi put a $5 price target and the market revalues their 35% equity stake

[johnnybaiamonte]

Lie, lie, lie. Just trying to cover losses.