Harley-Davidson stocks jump higher on news of buyout

By GAZETTE STAFF   Wednesday, March 17, 2010
ADVERTISEMENT
 

More Walworth County news


For breaking Walworth County news and hourly updates, visit the WalworthCountyToday.com home page throughout the day.

— Harley-Davidson Inc. shares rose almost 7 percent Tuesday after speculation that the company may be the target of a leveraged buyout. The stock closed at $28.35 per share, its highest close since November.

Harley officials would not comment to any media sources on the speculation that private equity firm Kohlberg Kravis Roberts was the potential bidder for the motorcycle company.

KKR also declined to comment, according to the news agency Reuters.

In October, shortly after third-quarter results were announced, Harley decided to close it's Buell Motorcycle division, based in East Troy.

Harley-Davidson reported a loss of $218.7 million in the fourth quarter of 2009, and the company has warned investors that that 2010 will be "challenging."

Craig Kennison, an analyst covering Harley Davidson with Milwaukee-based Robert W. Baird & Co. Inc., told www.biztimes.com that the speculation seemed to be based on rumors.

He said Harley shareholders would likely be “enormously disappointed” with a $27 or $28 per share price. Harley’s stock peaked at $75.87 per share in November 2006.

“I am one that sees a significant amount of value (in Harley) that the market does not appreciate,” Kennison said.




reader COMMENTS

Before you post a comment, consider this:

Note: Walworthcountytoday.com does not condone or review every comment. Read more in our User Policy Agreement
  • Keep it clean. Comments that are obscene, vulgar or sexually oriented will be removed. Creative spelling of such terms or implied use of such language is banned, also.
  • Don't threaten to hurt or kill anyone.
  • Be nice. No racism, sexism or any other sort of -ism that degrades another person.
  • Harassing comments. If you are the subject of a harassing comment or personal attack by another user, do not respond in-kind.  Hit the "Suggest Removal" button on offensive comments.
  • Share what you know. Give us your eyewitness accounts, background, observations and history.
  • Do not libel anyone. Libel is writing something false about someone that damages that person's reputation.
  • Ask questions. What more do you want to know about the story?
  • Stay focused. Keep on the story's topic.
  • Help us get it right. If you spot a factual error or misspelling, email onlineeditor@communityshoppers.com or
    call 1-262-728-3424, extension 108
  • Remember, this is our site. We set the rules, and we reserve the right to remove any comments that we deem inappropriate.

Post Comment

Commenting requires registration.

Username:
Password: (Forgotten your password?)

Comment:

ADVERTISEMENT