Shares of Del Monte Foods soared at 3:30pm Wednesday as news leaked about the possible takeover of the company. A group led by KKR & Co. agreed is rumored to buy Del Monte Foods for approximately $19/share. This represents a 5.6% premium over Wednesday's closing price.
Call option volume was higher than normal on DLM as investors anticipate a rapid move higher for the stock in the near term. This is another indication that there is a real deal in the works.
