Shares of telecom equipment company Avaya soared midday following a report that it is mulling a leveraged buyout offer.
Avaya Holdings (NYSE:AVYA) jumped more than 35%, while the S&P 500 communication services index was flat%.
The offer from a private equity firm would value the company at more than $20 per share, or $5 billion, Reuters reported Sunday, citing people familiar with the matter.
The stock was initiated with a buy rating at Guggenheim securities earlier this month.
Shares were down more than 40% over the last year before today’s spike.
