Stock Alert: MDC Partners Stock Spikes 137% In Premarket On Proposed Combination With Stagwell

(RTTNews) - Shares of MDC Partners Inc. (MDCA) are rallying over 137% in pre-market today, after Stagwell Media LP announced a proposed combination with MDC Partners.

The proposal values MDC Class A subordinate voting shares at $4.25 per share on a fully diluted basis and implies a premium of 263% to MDC's closing price of $1.17 per share on June 24, 2020.

MDC Partners' Board has formed a special committee of independent directors to review the preliminary, non-binding proposal made by Stagwell Media LP with respect to a potential business combination between the company and Stagwell.

MDCA has been trading in the range of $1.01 - $3.43 for the past one year, and closed Thursday's trade at $1.15, down 2 cents or 1.71%. The stock is currently trading at $2.73, up $1.58 or 137.39% in the pre-market session.