Praxair (PX): A 26% Control Premium Would Still Net 8% ROIC - Jefferies
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Jefferies analyst, Lawrence Alexander, reiterated his Buy rating on shares of Praxair Inc. (NYSE: PX) and noted that a Praxair-Linde tie-up would be another twist in the M&A rumors but not the most unlikely. Asset disposals are hardly crippling in a business of regional oligopolies, and the transaction could fix strategic challenges for both companies. The analyst estimates Praxair could pay a 26% control premium, 50% equity, and still achieve an 8% ROIC in FY3 and improve FCF/Share by $1.70.
The analyst did not change his price target of $140.
Shares of Praxair Inc. closed at $118.03 yesterday.
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