Sam Boughedda

Investing.com — GDS Holdings Ltd (NASDAQ:) shares gained 3.5% Monday after a Morgan Stanley analyst wrote a note on the stock saying it “will rise in absolute terms over the next 15 days.”

Yang Liu, analyst reiterated his overweight rating for the stock and a $58 price target. He attributed the anticipated rise to GDS peer VNET’s “unsolicited preliminary non-binding buyout offer.”

VNET Group Inc (NASDAQ) received an offer from Hina Group, Investment Bank Co. Ltd. Shanghai Branch for all its ordinary shares. It is estimated that the proposal was for $8 per American depositary Share, which would be approximately $1.33 each ordinary share.

VNET shares jumped 28% Monday.

The offer price is 54% higher than VNET’s closing price. Liu stated that this may trigger a valuation fix for China IDC, an internet data center in China.

Analyst said that they estimate there to be a 80%+ probability (or “highly unlikely”) for this scenario.