Harley-Davidson stocks jump higher on news of buyout
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MILWAUKEE 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.

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