Stewart Enterprises plunges to new 52-week low as SCI pulls plug on acquisition
Stewart Enterprises Inc. (Nasdaq:STEI) lost a quarter of its value this morning, sinking to a new 52-week low, after Service Corp. International (NYSE:SCI) announced just after the market closed Tuesday that it has withdrawn its proposal to buy the company for $11 a share.
Jefferson, La.-based Stewart, a funeral home operator, issued a statement this morning saying it was “surprised and disappointed by the unexpected withdrawal.”
In a letter to Stewart CEO Thomas Crawford, Houston’s SCI called Stewart's three pre-conditions to negotiation of a transaction with SCI “unacceptable.”
In response, Crawford said the only thing that seemed to have changed since initial discussions is the state of the financing markets.
By late morning, Stewart is at $5.18, down $1.91 from Tuesday’s close, after falling to $4.93 earlier in the day. Previously, the stock had ranged between $5.37 and $10. More than 1.6 million shares had changed hands compared with an average three-month volume of 1.05 million.
For detailed price information and news stories on Stewart Enterprises, click STEI.
About the Author
Contributing author Mary Ann Azevedo has more than 13 years of writing and editing experience that includes coverage of a broad range of companies.
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