This German TV Maker is Cashing In On Apple Rumors
Loewe has denied Apple (NASDAQ:AAPL) approached it with a takeover bid, but the stock of the German luxury television maker is shooting up on the buzz. Loewe shares rose to a 10-month high on Monday based on the market talk, rising 30 percent to 5.92 euros in the morning. Trading volume was more than three times its 90-day average.
On Saturday, blog AppleInsider had an unconfirmed report that Apple had offered the German company 87.3 million euros ($113 million) for a buyout and that the latter’s management was due to make a final decision before May 18. That suggested price offered a 48 percent premium on the stock’s Friday closing price of 4.5390 euros. However, a Loewe spokesman released a statement saying the company’s board had received no intimation of a possible offer. The spokesman said there was “absolutely nothing to” the rumor.
Loewe manufactures high-end home entertainment sets, which the company has already integrated with Apple’s iPad for remotely controlled operations. With the market staying unsteady, Loewe had reported first-quarter operating losses of 900,000 euros compared to a 2.9 million euro loss in the year-ago quarter, though sales rose 8 percent to 66.6 million euros.
Japan’s Sharp holds 28.8 percent of Loewe’s shares, its own management has 14 percent, and French company LaCie has an 11.2 percent stake. Apple manufacturing partner Foxconn has a 10 percent share in Sharp.
Apple has long been rumored to be working on a new full-fledged television product. Last week, Foxconn chairman Terry Gou had said his company was preparing to build an Apple television. He added that development or manufacturing had not yet started.
Investing Insights: Your MUST-READ Morning Stock Futures Cheat Sheet: Pressing lower.