Adidas to Buy Reebok in $3.8 Billion Deal

[Bond]

FRANKFURT, Germany - Adidas said Wednesday it will buy shoemaker Reebok for $3.8 billion, giving the company about 20 percent of the U.S. market and the potential to better challenge leader Nike Inc. on its home turf.

Under the terms of the deal, Adidas-Salomon AG will pay $59 per share for all of Reebok International Ltd.'s outstanding stock, a premium of 34 percent to Tuesday's closing price, said Adidas Chairman and CEO Herbert Hainer. Shares of Reebok rose $12.79, or 29 percent, to $56.74 in early
New York Stock Exchange trading after the news. Adidas shares rose 6 percent to 156.93 euros ($193.11) in Frankfurt trading.

"This is a once-in-a-lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry," he said.

Reebok's board has signaled its approval of the offer price and approval by the company's shareholders appeared likely, Hainer said.

Source: Yahoo News

That's just strange.