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A source close to the
negotiation told RTO Online that once the value of stock options
is factored in, the final cost of the Rainbow Rentals
acquisition by Rent a Center could approach 13 times monthly
revenue per location (according to Rainbows most recent SEC
filings, that would equate to approximately $109 million).
The agreement provides each holder of Rainbow
stock options to receive an amount equal to the difference
between $16.00 and the exercise price of the option. The highest
Rainbow has traded in the past 5 years was $13.50 per share in
May of 1999.
Rent a Center officials would not comment on the
report. Rainbow Rentals did not return calls.
developing...
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