After proposing negotiations for a possible purchase or merger with Lumber Liquidators, Cabinets To Go Owner and former Lumber Liquidators CEO Tom Sullivan reversed course and sold 80% of his stake in the company at a profit, CNBC reports.
Sullivan said he opted out of possible buyout or merger talks because Lumber Liquidators’ stock price had grown too high.
Sullivan had increased his stake in the company to nearly 6% in August. Following his announcement of possible buyout talks, Lumber Liquidators stock shot up nearly 9%. He purchased stock for an average of $7.88 per share, and sold it Sept. 13 at an average of $11.68, according to CNBC.
Following Sullivan’s announcement that he was no longer interested in a purchase or merger with the company Sept. 13, Lumber Liquidators stock plunged 13%. As of publication, its shares were valued at $9.02.
Sullivan told Bloomberg there was still a possibility of a purchase or merger with Lumber Liquidators in the future.
“Unless there is major change in the board and management, I’m sure there will be another opportunity for us,” he said.
