by Lance Turner
Posted 10/1/2007 03:26 pm
Updated 2 years ago
Shares of Acxiom Corp. of Little Rock on Monday ended the day down more than 19 percent to $15.89 after the firm announced that a deal to sell out and go private had been abandoned.
Shares of Acxiom (Nasdaq: ACXM) ended at $15.89 after closing Friday at $19.79. Volume was heavy, with more than 13.8 million shares changing hands. The three-month average trading volume had been 739,000 shares.
During the day, Acxiom share hit a low of $14.75.
The Nasdaq suspended trading on Acxiom shares early Monday, just before the company confirmed a Wall Street Journal report that a $3 billion plan to sell out to two private equity firms, ValueAct Capital Partners and Silver Lake Capital Partners, had been scuttled. It also announced that Charles Morgan, Acxiom's company leader for 35 years, would retire after helping find his successor.
Acxiom stock is now down more than 41 percent from the $27.10 per share purchase the two private equity firms were going to pay.
Just before noon, however, Acxiom issued a news release countering a Wall Street Journal suggestion that company’s second fiscal quarter, which ended Sunday, would be “even worse” than the first quarter, during which the company had a net loss of $11.5 million.
Acxiom said revenue, income from operations and net income would be “improved” from the first quarter.
"Our forecast for the second half of the fiscal year is for improved results compared to the first half of the year,” retiring Company Leader Charles Morgan said in the release. “Also, I should note that the $65 million we expect to receive related to the termination of the merger agreement will be substantially more than any one-time expenses related to the merger agreement."
Acxiom is scheduled to issue its earnings release on Oct. 24.