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General Cable stock soars on takeover speculation
General Cable's stock soared more than 20 percent Tuesday amid speculation it might be a takeover target as an Italian-based rival looks to grow.
Shares of the struggling Highland Heights-based copper and aluminum wire maker shot up as high as $18.39 – up 25.8 percent from Monday's $14.62 close – after Bloomberg published a report saying Prysmian was discussing a bid with its financial advisers. The stock closed at $17.73, up $3.11 or 21.3 percent.
More than 7.9 million shares changed hands on Tuesday – more than 10 times average trading – and trading for the stock was briefly halted Tuesday.
The report, citing unnamed sources, said no talks were underway and the Milan company has not even approached General Cable yet.
Last month, the company reported a 2014 loss of $603.6 million on sales of $6 billion. Last year, the company also said it was selling off factories in Asia Pacific and Africa and seeking to replace its CEO Gregory Kenny.
General Cable has more than 35 plants around the world, employing 13,000 workers, including 400 based at its headquarters in the region. The company makes everything from harness assemblies and ignition wires for cars to high-performance wire and cable for military communications, ships and vehicles.
The company grew into a worldwide wire and cable leader through a series of its own acquisitions: 21 deals since 1999 that have tripled the company's size.
General Cable's expansion, however, has been complicated by a slowing worldwide economy and accounting problems in acquired businesses that remain a subject of ongoing regulatory scrutiny.
source : http://www.wireandtubenews.com/2015/03/22/general-cable-stock-soars-on-takeover-speculation/