S&P Capital IQ Upgrades ADSS of Shanda Interactive Entertainment from Strong Sell to Hold

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ upgrades the ADSS of Shanda Interactive Entertainment (NASDAQ: SNDA) from STRONG SELL to HOLD. The target price has been increased from $31 to $41.

Analyst Scott Kessler, in a research note published yesterday mentions that the company received an acquisition proposal from a group managed by CEO & Chairman Tianqiao Chen. The board of SNDA, which includes Chen’s wife as director and his brother as COO and director, received an introductory non-binding proposal to buy 32% of the company’s outstanding ADSS, which Chen did not hold until 9/30. The proposal is still tentative, debt financing is not decided yet, and an independent committee needs to be created to retain an advisor and review the offer. The analyst does not expect another offer.