Article Credit: Associated Press
Cargo airline
ABX Air Inc. said Thursday that ASTAR Air Cargo Holdings LLC is seeking to buy the company for $7.75 per share in cash.
ABX said the proposal is not a formal offer, and it will evaluate the indication of interest, as well as any formal offer actually made.
Based on the 58.7 million shares of stock outstanding ABX Air (otcbb:
ABXA.OB -
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people ) reported having as of May 9, the proposal would be worth $454.8 million. The $7.75 proposal represents a 7.2 percent premium over ABX Air's Wednesday closing price.
In a letter written to ABX Air's board and released earlier Thursday, ASTAR Air Cargo Holdings said it hoped to enter into a friendly, negotiated merger agreement.
ABX Air shares jumped 84 cents, or 11.6 percent, to $8.07. Earlier in the session, they climbed as high as $8.56, topping their prior 52-week high of $7.95.
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