Monday, May 17, 2010

Pactiv up 18% on LBO rumors (PTV)

Packaging company Pactiv (PTV), maker of Hefty bags, is up this afternoon on rumors that Apollo Management is interested in taking the company private.

The thinking here is that the parts are worth more than the whole...even after today's move, the shares only fetch 12.5x this year's earnings estimate.  Personally, I'd much rather see another public company rush in to deploy their own cash, rather than a buyout firm levering up the company's cash flows.

Copyright 2010 AlphaNinja

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