AMC Stock Soars as Hearing Risks Delaying APE Conversion
- Gap between two classes of shares is largest since December
- Investors are slated to vote on string of proposals March 14
An AMC movie theater in the Times Square neighborhood of New York.
Photographer: Amir Hamja/BloombergThis article is for subscribers only.
AMC Entertainment Holdings Inc. common stock surged 23% after a Delaware court said it will hold a preliminary injunction hearing on April 27, signaling a highly anticipated conversion between the shares and preferred units may take longer than expected.
The movie-theater operator has been pushing for a shake-up to its share structure that would convert preferred shares — ticker APE — into AMC common stock this month. However, the April hearing is considered a headwind by risk arbitrage traders looking to capitalize on the spread because it creates uncertainty around the timing of the one-for-one swap.