Shares of Cubic Corp. CUB, -0.13% shot up 10.5% into record territory in premarket trading Monday, after the defense contractor said it received an unsolicited buyout bid for $76 a share from Singapore Technologies Engineering Ltd. (STE) SGGKY, -4.22% S63, -0.26%, which implies a market capitalization for Cubic of $2.42 billion. The per-share bid represents a 9.0% premium to Friday’s closing price of $69.70. Cubic said it expects to determine STE’s bid to be a “superior proposal” to the current buyout agreement for $70 a share in cash reached with affiliates of Veritas Capital and Elliott Investment Management announced in February. Cubic said the merger agreement with Veritas and Elliott “remains in full force and effect,” but Cubic said it will engage in talks with STE to evaluate the merits and risks of the proposed deal. The deal with Veritas and Elliott has a termination fee of $113.6 million. The stock, which is on track to open above the Aug. 28, 2018 record close of $76.85, has run up 18.4% over the past three months, while the S&P 500 SPX, -0.06% has gained 6.1%.
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