CKX Inc. (CKXE) had the biggest rally in the Russell 2000 Index on Friday, gaining more than 25% to $5.73. The media and entertainment company confirmed that it received a proposal today from a group of investors led by Simon Fuller, the creator of “American Idol,” and Roger Jenkins, a former Barclays Capital banker, who said are planning a $600 million bid for the company.
CKX Inc. announced its board of directors is evaluating the proposal and has retained Gleacher & Co. financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor to assist in this evaluation. “The company cautioned, however, that there can be no assurance that it will enter into any agreement with respect to any transaction, or as to the timing or terms thereof, including price.”
The news comes close on the heels of CKX’s founder Robert F.X. Sillerman’s resignation as its CEO and chairman on May 7, in view of a possible acquisition. Sillerman is also the company’s largest shareholder. He owns about 20 percent of CKX Inc.’s outstanding stock.
CKX shares are up $1.02, or 22%, at $5.29 in midday on Nasdaq. They touched a high of $5.73 earlier in the session.