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Duff & Phelps rallies after takeover, firm says better offer unlikely

Duff & Phelps (DUF), which provides financial advisory and investment banking services, is surging after the company last night announced that it had agreed to be acquired by a consortium led by private equity firm The Carlyle Group (CG) for $15.55 per share, or approximately $665.5M. In a note to investors earlier today, William Blair analyst Timothy McHugh wrote that FTI Consulting (FCN) and Navigant Consulting (NCI) probably at least considered bidding for Duff & Phelps, but ultimately decided not to do so. Therefore, the most likely outcome is that the Carlyle consortium will acquire Duff & Phelps for $15.55 per share, the analyst believes. However, it is possible that a competing bid will surface, added McHugh, who maintained an Outperform rating on Duff & Phelps. In early trading, Duff & Phelps jumped $2.54, or 19.46%, to $15.59, while FTI Consulting lost 0.74% to $32.09 and Navigant added 0.27% to $10.94.