Bucyrus (Nasdaq:BUCY) Explodes Over $20 a Share on Caterpillar (NYSE:CAT) Acquisition News

Mining equipment maker Bucyrus International, Inc. (Nasdaq:BUCY) has soared by over $20 a share in response to the news Caterpillar (NYSE:CAT) has acquired the company for $8.6 billion, including $7.6 billion in debt Bucyrus holds at this time.

Along with assuming the debt of Bucyrus, Caterpillar will use balance cash and equity to pay for the acquisition, which was about a 32 percent premium over the share price of Bucyrus at the time of the offer.

The deal is a good one for Caterpillar, which in the highly cyclical construction business, has added another business which can also move cyclically, but at different times, offering them a sustainability of revenue.

Bucyrus surged to $89.75, rising by $20.13, or 28.91 percent, as of 3:00 PM EST.