Why McGrath RentCorp Stock Slumped on Wednesday

In its 45-year history, McGrath RentCorp (NASDAQ: MGRC) has had many encouraging pieces of news to report to its shareholders and the world at large. Unfortunately for the business-to-business equipment rental specialist, its top news item on Wednesday wasn't so positive. On the back of that, investors traded out of the stock to leave it with an over 3% decline in price. This was a more pronounced slide than the 0.3% dip of the S&P 500 index on the day.McGrath announced that it and peer WillScot Holdings (NASDAQ: WSC) have mutually agreed to cancel their planned merger. Per the terms of the two companies' merger agreement, McGrath is to receive a termination fee of $180 million from WillScot. The pair originally announced the tie-up in January. Under the terms of their deal, WillScot was to acquire McGrath for $3.8 billion in cash and stock, with the former comprising 60% of the purchase and the latter the remainder. That amount represented a premium of 10% over McGrath's share price on the trading day prior to the announcement. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool