Foot Locker surges on Dick's Sporting Goods' $2.4 billion acquisition deal

Shares of Foot Locker FL.N rise 81.5% to $23.37 premarket

Co enters into definitive merger agreement under which Dick's Sporting Goods DKS.N will acquire it in a $2.4 billion deal

The $24 per share deal represents an 86.5% premium on FL's last close price of $12.87

Separately, co also reports preliminary Q1 results, says will not be providing or updating previous guidance

FL expects comparable sales to decline by 2.6% and adjusted loss per share of 7 cents vs. estimates of a 4 cent loss - data compiled by LSEG

DKS shares down ~8% at $192.80 premarket

Brokerage TD Cowen downgrades DKS to "hold" from "buy", cuts PT to $216 from $245

Brokerage says acquisition likely to produce low returns, and that it would be a "strategic mistake" and a "misallocation of capital" at such a premium

FL and DKS down ~40% and ~8% respectively, YTD, as of last close