PIA Shares Rise 29% on Merger Plan News

PIA Merchandising Services Inc. shares surged 29% Tuesday, a day after the company announced it was merging with a New York competitor.

Shares rose $1.13 to $5, the highest level since September. About 109,000 shares were traded, more than six times the daily average over the last three months.

Irvine-based PIA, which makes sure its clients’ products are being properly handled in stores, said Monday it will merge with SPAR Group, a privately held collection of smaller companies that provide a variety of merchandising and marketing services.

PIA agreed to issue 12.3 million shares of stock to SPAR shareholders, giving SPAR a 69% stake in the merged company.

The deal, which requires shareholder approval, is expected to be completed by June.