$PZZA Gate: Papa Johns Stock Soars On Fake Buyout News

Based on Hunterbrook Media’s reporting, Hunterbrook Capital is short $PZZA at the time of publication. Positions may change at any time. See full disclosures below.

Papa Johns International ($PZZA) stock surged more than 18% today on what appears to be a scheme using fake news distribution websites to spread false reports of a $65-per-share acquisition offer from private equity firm TriArtisan Capital Advisors.

The move follows last week’s report that Apollo had withdrawn an unrelated $64 offer for Papa Johns, priming traders to react to M&A talk in the name after PZZA’s recent earnings. The stock fell over 20% after Reuters broke the news that Apollo was not moving forward.

A “person familiar with the matter” told Seeking Alpha today’s “report is not true.” After publication, a source close to Papa Johns told Hunterbrook the acquisition rumors were not credible. “We knew it wasn’t credible and reporters have been writing this nonetheless,” they said.

After the publication of this article, Bloomberg News updated its reporting to include: “A person familiar with Papa John’s [sic] who asked not to be identified told Bloomberg News there were no discussions with TriArtisan.”

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