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(Sharecast News) - Shares in American building products distributor GMS surged again on Friday, extending recent gains on reports that Home Depot will enter the bidding war for the company.
According to the Wall Street Journal, Home Depot has made an offer for GMS, just two days after its larger peer QXO proposed taking the company over for $5bn. However, the retail chain has yet to release a statement.
QXO's $95.20-a-share cash proposal, which was unsolicited, would be reviewed by GMS's board before any comment is given, the company said in a statement on Thursday.
GMS said it would "carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the company and all GMS shareholders". No shareholder action would be required at this time, it said.
The QXO proposal valued the company at a 30% premium to GMS's closing price of $73.24 on Tuesday. News of the QXO approach sent the stock surging 11% to $81.01 on Wednesday.
With US markets closed on Thursday for the Juneteenth national holiday, shares on Friday jumped an additional 27% to $102.23 in early deals, though the exact price that Home Depot was considering has not been disclosed.
Home Depot was up 0.4% at $348.55, while QXO was 4.9% higher at $23.60.
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