Oil giant BP (NYSE: BP) announced on Thursday that it will acquire TravelCenters of America (NASDAQ: TA), an operator of travel centers and truck service facilities in North America at around $86 per share in cash, with a total deal valued at $1.3 billion.
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Shares of TA soared by more than 70% in pre-market trading before the trading was halted.
BP’s offer price of $86 per share indicates an 84% premium to the average trading price of the 30 days that ended February 15. The sale must be approved by a majority of TA’s shareholders.
Analysts are cautiously optimistic about BP stock with a Moderate Buy consensus rating based on six Buys and four Holds.