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Fly News Breaks for August 16, 2019
CONE, DLR
Aug 16, 2019 | 13:52 EDT
Stifel analyst Erik Rasmussen noted that Bloomberg reported that CyrusOne (CONE) is considering a potential sale after receiving takeover interest from several suitors, including a bidding group that includes KKR (KKR). While the analyst said he is not privy to any information that would suggest that a takeout is actually happening, he does believe CyrusOne is an attractive asset and "a disruptive force in the wholesale data center market." Citing Digital Realty's (DLR) acquisition of DuPont Fabros in 2017 as the most comparable asset in a transaction, and the increase in private market valuations since then, Rasmussen estimated that could CyrusOne could be valued at $83-$93 per share in a potential deal. He keeps a Buy rating on CyrusOne shares.