Analyzing an Acquisition Target: Kingfisher
Acquisitions are one of the most exciting things that can happen to your stock portfolio. Often these events result in the acquired company seeing a double digit percentage gain overnight. While investors would be wise to avoid investments purely because they are the speculation of takeover chatter, there is nothing wrong with investing in good, well-run companies that have the added kicker of being the potential target of a larger peer or a private equity firm. For that reason, I would like to discuss the takeover prospects of UK company Kingfisher (LSE: KGF) (NASDAQOTH: KGFHY), Europe’s largest home improvement retailer, and the world’s third largest.