Shares in Electrolux, the world’s second biggest white goods maker, extended their previous day’s gains on Thursday amid speculation of a possible bid for the firm, analysts said.
Electrolux shares rose 2.4 percent to 115.5 Swedish crowns by 1143 GMT, outperforming the Stockholm bourse’s blue chip OMXS30 index which was up 1.0 percent, to add to the 2.0 percent gain recorded on Wednesday.
Christer Gardell, head of activist fund Cevian, said in a newspaper interview this week that the fund, which with Parvus Asset Management bought a 5.3 percent stake in truck maker Volvo, had bought stock in other firms and that these investments would be revealed later this quarter.
“There were rumours yesterday that Cevian would buy into the firm, but I don’t know where that is coming from,” said an analyst who asked not to be named.
Cevian was not immediately available for comment.
Another industry analyst pointed to Investor, the investment vehicle of Sweden’s powerful Wallenberg family, saying it might have cash to spend on a bid for Electrolux if truckmaker Scania AB is taken over by Germany’s MAN AG.
Investor already owns Electrolux shares equal to almost 30 percent of the votes.
“I think it (the rise in Electrolux shares) could be due to speculation about Scania,” he said
“If MAN raises the bid, as some are banking on, and Investor accepts it, the market would speculate about what Investor would want to do with the money, for example making a bid for Electrolux.”
Investor has rejected MAN’s hostile 10.35 billion euro
($13.4 billion) bid for its smaller Swedish rival, but many investors believe the German truck maker will sweeten its offer and Scania shares have of late traded well above the bid level.
From Rueters
