Focus Media jumps on offer to go privateAugust 13, 2012: 1:39 PM ET
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.