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Focus Media jumps on offer to go private

August 13, 2012: 1:39 PM ET

Click the chart to track shares of Focus Media.

Shares of Focus Media (FMCN) spiked Monday after the Chinese company said it is considering a $3.7 billion deal to go private from a group of investors that includes its CEO Jason Nanchun Jiang.

The bid, which offers an almost 15% premium to Focus Media's closing price last week, also includes investors like private equity firms the Carlyle Group (CG),  CITIC Capital Partners, FountainVest Partners, CDH Investments and China Everbright.

Shares of the Hong Kong company were up nearly 8% in afternoon trading.

Focus Media has been in the spotlight since last November when short seller Muddy Waters accused the company of fraudulently overstating the number of screens in its advertising network and claimed that Focus Media may have overpaid for acquisitions to hide its losses.

Shares initially plunged following the allegations, but have since rebounded as Focus Media has refuted the firm's charges.

As a committee of independent directors formed by Focus Media's board considers the offer, StockTwits users weigh in. There is a healthy dose of skepticism, but some traders appear hopeful that a deal would get done ... which could be bad news for anyone still shorting the stock.

longshorttrader: Initial chatter I'm hearing is that the $FMCN financing is solid and that political considerations trumping economic ones.

saveme: $FMCN one day deals and next day changes ...we can't believe all on this company... let'see time will tell..

OptionsHawk: $FMCN another leaked China deal; traded 29,000 calls Friday, nearly 6X average

MichaelComeau: Congratulations to the folks who bought $FMCN August and September calls on Friday!

Event_Trader: @Street_Insider $FMCN going private? Fosun holdings has been aggressively buying shares since the Muddy Waters reports targeted the name...

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Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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