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Hamilton pigment plant

Courtesy Tronox

Shares of

Tronox Holdings

closed sharply higher Monday following a report that said the pigment manufacturer received an all-cash offer of $4.3 billion from private-equity giant 

Apollo Global Management.

On a per-share basis, the offer was for $27 a share, Reuters reported, citing sources who spoke on condition of anonymity. Tronox has hired advisers to consider the bid.

Efforts to reach Tronox for comment were unsuccessful.

Tronox (ticker: TROX) shares rose 11.05% on Monday to close at $22.81. The stock traded as high as $25.48 earlier in the session, the biggest advance since April 2020, according to Bloomberg.

Eight analysts surveyed by FactSet rate Tronox stock at Overweight, with an average price target of $25.88.

Analysts at Alembic Global Advisors said if the report of Apollo’s bid is true, Tronox shares were being undervalued.

“In a nutshell we see this bid from Apollo, if true, as a lowball bid and see further upside in the name,” Alembic said. It reiterated its Overweight rating on the stock. Alembic’s price target is $31.

Apollo Global (APO) closed Monday with a gain of more than 2%.

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