Yum China’s stock plunges to pace NYSE decliners after report suitor has dropped interest
Shares of Yum China Holdings Inc. YUMC, -14.35% plummeted 15% toward a 17-month low in active trade Tuesday, to pace the NYSE’s decliners, after Bloomberg reported that Hillhouse Capital was dropping its pursuit of operator of Pizza Hut and KFC fast-food restaurants in China. Volume ballooned to 7.6 million shares, already more than double the full-day average. The investor group, which includes KKR & Co. KKR, +0.89% decided to not continue pursuing the deal after the initial proposal was rejected, the report said, citing people with knowledge of the matter. The company, which was spun off from Yum Brands Inc. YUM, -0.37% in October 2016, had a market capitalization of about $14.1 billion as of Monday’s stock closing price. Yum China’s stock has tumbled 25% over the past three months, while Yum Brands shares have gained 5.9% and the S&P 500 SPX, -0.03% has tacked on 3.5%.
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