Solstice shares dropped 13% to $69.76 following the announcement. The company plans to acquire the Miami Beach-based specialty-chemicals maker through a mix of cash and stock. Under the original terms, Solstice committed to paying $10 in cash alongside half a share of its own stock for every Element share, valuing the deal at $50.10 per share based on Thursday’s closing prices.
In section Market Quotes
Solstice Advanced Materials Shares Tumble Following Element Buyout
Investors reacted sharply on Monday to the proposed acquisition of Element Solutions by Solstice Advanced Materials, sending shares of both companies into a tailspin. The deal, initially designed to offer a 15% premium, saw its value evaporate almost instantly as Solstice’s stock price suffered a double-digit decline.
However, the subsequent selloff in Solstice equity drastically altered the math. The deal’s current market value has slipped to roughly $44.88 per share for Element investors. This adjustment leaves the acquisition premium at just 2.9% above Element’s Thursday close of $43.64, causing Element shares to retreat 1.6% to $42.94 as the market recalibrates the viability of the transaction.
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