Ambow's (AMBO) Troubles Create Opportunity for New Oriental Education (EDU)

March 25, 2013 3:57 PM EDT
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Price: $48.43 +0.83%

Rating Summary:
    11 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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On March 25th, Baring LP sent a letter to Ambow's (NYSE: AMBO) board of directors withdrawing its prior non-binding proposal to acquire the company. The March 25 Letter noted that in the ten days since the submission of the Proposal, three of the four independent directors and the Issuer's auditors had resigned, and concluded that it would not be possible to proceed with the proposed transaction set forth in the Proposal.

Commenting on new, analyst Trace A. Urdan said "While the failed Ambow go-private transaction could dampen any takeover premium attached to New Oriental Education (NYSE: EDU) shares, the more meaningful implications of Ambow's troubles in our opinion, are that New Oriental (EDU) is likely to gain market share at Ambow's expense."

Urdan said Chinese consumers pay close attention to the news related to U.S. listed Chinese companies and Ambow's troubles have not gone unnoticed.

Wells Fargo has an Outperform rating on New Oriental Education.

For an analyst ratings summary and ratings history on New Oriental Education (NYSE: EDU) click here. For more ratings news on New Oriental Education click here.

Shares of New Oriental Education closed at $17.18 yesterday.

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