Catalina Marketing Corp said on Friday that it hired investment bank Goldman Sachs as an advisor after the company received take-over interest from a private equity firm.
Reuters earlier reported on Friday, citing sources familiar with the process, that several private equity firms were pursuing the company, with Goldman running the process. Bids were expected to be around $30 per share.
Catalina shares jumped $4.02, or 16.6 percent, to $28.25 before being halted on the New York Stock Exchange Friday afternoon. The shares rose another 86 cents after trading resumed, closing 20.14 percent higher at $29.11. Prior to the Reuters report, the company had a market capitalisation of $1.1 billion.
St. Petersburg, Florida-based Catalina provides marketing services to companies based on the information from its electronic network collecting information from the checkout scanners of some 21,000 retail centres in the United States, according to Hoovers.
Catalina's Health Resource segment provides targeted marketing materials to consumers through its pharmacy network. Catalina said on Friday that it hired Goldman after it received unsolicited take-over interest from a private equity firm. It did not name the firm. Reuters sources said that as many as six firms were now pursuing the company, adding that an offer was expected to be around $30 per share.
Catalina said its board of directors formed a special committee, which has authorised Goldman to solicit expressions of interest from other third parties and advise it with respect to considering the possible sale of the company.
No decisions with respect to the sale have been made, nor is there an assurance that the board will approve of one, Catalina said. Catalina declined to elaborate beyond the press release. Goldman declined to comment.
Goldman Sachs Asset Management owned a 4.95 percent stake in the company as of September 30, according to Reuters data. ValueAct Capital Management, an activist hedge fund, owned a 15.45 percent stake as of the same date, the data showed.
ValueAct has a reputation as an aggressive activist investor. The San Francisco-based hedge fund has made several buyout offers to public companies this year and been involved in other corporate shake ups.