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Fly News Breaks for December 27, 2019
AXE, WCC
Dec 27, 2019 | 07:53 EDT
After Wesco (WCC) announced it had submitted a takeout offer of $93.50 per share in cash and stock for Anixter (AXE), Raymond James analyst Samuel Darkatsh said he had already assumed Wesco would raise its prior $90 offer but he sees "several positive takeaways" from Wesco's announcement compared to his prior assumptions regarding the deal, including higher than expected potential run-rate synergies of "greater than $200 million" and the fact that the transaction is not subject to a Wesco shareholder vote. Wesco seems intent on just acquiring Anixter and not selling itself, added Darkatsh, who called this "unsurprising." The analyst, who also noted that Wesco said its Q4 sales growth is trending above the consensus forecast, keeps a Strong Buy rating on Wesco shares.
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