At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up a sizeable 1.4% to 7,495.4 points.
Here's what is happening on the ASX 200 on Monday:
Afterpay to be acquired by Square
The Afterpay Ltd (ASX: APT) share price is rocketing higher on Monday. This follows news that the buy now pay later provider is recommending a $39 billion takeover proposal by US payments giant Square. The Afterpay Board is recommending investors accept an offer of 0.375 shares of Square Class A common stock for each Afterpay share they hold. Based on the latest Square share price of US$247.26, this implies a transaction price of approximately $126.21 per Afterpay share.
Oil Search-Santos merger update
The Oil Search Ltd (ASX: OSH) share price is charging higher after its potential merger with Santos Ltd (ASX: STO) took a positive step forward. This follows news that Santos and Oil Search have reached an agreement on the merger ratio. Under the revised merger proposal, Oil Search shareholders will receive 0.6275 new Santos shares for each share held. This implies a transaction price of $4.29 per Oil Search share.
Pro Medicus shares fall on broker downgrade
The Pro Medicus Limited (ASX: PME) share price is sinking today after being downgraded by analysts at Goldman Sachs. According to the note, the broker has downgraded the health imaging technology company's shares to a neutral rating with a $55.60 price target. Goldman Sachs made the move on valuation grounds after a strong period of share price performance.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has unsurprisingly been the Afterpay share price with a 24% gain. This follows the surprise announcement of its acquisition by Square. The worst performer on the ASX 200 has been the Pro Medicus share price with a 4.5% decline following the aforementioned broker downgrade.
