Tate & Lyle: Advent International Possible Acquisition Intent Sends Shares Soaring

According to The Financial Times, private equity group Advent International is in the early stages of preparing a takeover offer for narrow-moat Tate & Lyle. The news drove an initial 13% surge in Tate & Lyle's shares, but with no clear indication yet that an offer would even be made, the reaction toned down, and the shares closed 8% higher on Oct. 16. We are waiting for further news on the acquisition, including a possible purchase price as well as any confirmation from either Tate & Lyle or Advent, before considering a change to our fair value estimate. We are maintaining our GBX 900 fair value estimate for now, which keeps the shares in 4-star territory even after the rally.