Discover Financial Services' Share Surge Following Acquisition by Capital One

In a significant financial sector development, Discover Financial Services (DFS) experienced a considerable jump in its share price during pre-market trading. This surge can be attributed to the news of an acquisition deal in which Capital One Financial Corp (COF) has expressed its intent to purchase Discover Financial Services in a substantial all-stock deal valued at approximately $35.3 billion.

Discover shareholders have a lucrative prospect ahead, as the acquisition terms lay out that they are poised to receive 1.0192 Capital One shares for each share of Discover that they own. This exchange ratio implies a generous 26% premium on Discover's closing price prior to the announcement. Following the news, Discover's shares experienced an impressive 11.2% increase to $122.88 in pre-market trade.

While Discover Financial Services' sharp rise has captured attention, other stocks have also shown movement in pre-market trading, announcing developments that range from patent grants and regulatory approvals to corporate restructuring and asset sales.

Discover, CapitalOne, Acquisition