Shares of Whirlpool Corp. soared in premarket trading in New York after a Reuters report explained that German appliance and engineering giant Robert Bosch is eyeing a potential takeover bid for the appliance maker.Â
Bosch has been talking to potential advisers about the possibility of making an offer for Whirlpool, which has a market capitalization of about $4.8 billion, one of the sources said.
The sources said it was not certain that an offer would be made, and asked not to be identified because the matter is confidential. -Reuters
Reuters pointed out that Bosch’s potential acquisition of Whirlpool could significantly strengthen its home appliance division amid increasing competition from Asian rivals. This deal would also allow Bosch, the world’s largest automotive supplier, to diversify its portfolio beyond the automotive industry and into home appliances.
As of Monday’s close, Whirlpool had a market capitalization of $4.75 billion. Sources were unclear about the composition of the deal, and a Bosch spokesperson called the report “market rumors.”Â
In markets, Whirlpool shares peaked in May 2021 just north of $250 a share, and since then, have plunged 65% to around the $87 handle on Monday, or about to the lowest levels since the early days of government-enforced lockdowns in the early Covid days.
WHR is up 18% in the pre-market…
Also, Whirlpool’s float is 13% short, or about 7.1 million shares, equating to about 4.8 days to cover. This may suggest the squeezing in premarket trading.
Tyler Durden
Wed, 06/26/2024 – 08:35
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Author: Tyler Durden
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