Boingo Shares Surge as Airport WiFi Provider Confirms Takeover Interest
Investors snapped up shares of Boingo Wireless Inc. on Tuesday, sending the stock up 23% after the WiFi services company confirmed it has "received multiple inquiries" regarding a potential takeover.
The Los Angeles-based company, whose WiFi antennas power internet service at airports and on planes, said its board is currently engaged in talks with several suitors. The stock catapulted to $14.60 in early trading on the Nasdaq, but is still well below the nearly $26 shares traded at last April.
"Management is not commenting on rumors regarding the recent news story speculating the Company is exploring a potential sale. The Company has received multiple inquiries regarding a potential strategic transaction," according to a statement issued by Boingo when it reported quarterly earnings on Monday. "Accordingly, the company's board of directors has engaged advisors to assess these opportunities.
Bloomberg, citing sources, reported last week that the company had received takeover interest.