Investors apparently approve of the idea of Thor Industries Inc. merging with Coachmen Industries Inc.
Coachmen’s stock price increased 22% and Thor gained 7% in New York Stock Exchange trading Monday.
Coachmen gained $2.81 a share after Thor revealed in the morning that it is willing to pay $18 for each outstanding share of Coachmen stock.
Coachmen closed at $12.69 a share Friday, but it opened at $15.50 a share Monday afternoon and it closed at $15.50.
At one point Monday afternoon, Coachmen traded at $15.88.
However, Coachmen stock remains well below its 52-week high of $24 a share.
Meanwhile, Thor stock gained $1.81 a share Monday to close at $26.25 a share, which also is well below its 52-week high of $32 a share.
Thor’s $18 a share offer would consist of 60% cash and 40% Thor stock.
Coachmen said it would review Thor’s offer and Thor Chairman Wade F.B. Thompson said he would consider raising the bid above $18 if Coachmen could prove it is worth more than $18 a share.