Breadth divergence is a troubling sign for the stock market

By Chris Wack

NCR Corp. shares were up 17% to $34 in premarket trading after The Wall Street Journal reported that the company is in exclusive talks to be sold to private-equity firm Veritas Capital, according to people familiar with the matter.

If a deal is made, it would be one of the biggest leveraged buyouts at a time when the environment for such deals has become more perilous.

WSJ reported that a deal could still be weeks away, the people said.

In April, NCR reported first-quarter revenue of $1.86 billion, an increase of 21% on year, but below its forecast of $1.9 billion to $1.95 billion.

The stock closed Monday’s session up 2%, at $29.10.

Write to Chris Wack at [email protected]

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