We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 1 Oct 2006 04:00 AM

Font Size

- Aa +

Trade sparks takeover talk


Electrolux, the world’s second largest household appliance manufacturer, could be the subject of a takeover bid following a massive rise in the company’s share value over the past two months.

A total of 11.5 million Electrolux shares were traded in just one day last month, the most since June and the second-busiest day this year, according to Bloomberg data. The boom in trade saw the company’s shares increase 16% in value and led Bloomberg to value the company at US$5 billion.

Electrolux has responded to the threat by declaring it would pay a special dividend to its shareholders and buy back stock, making it less attractive to potential suitors looking to cash in on the company’s vulnerable position.

Arabian Business: why we're going behind a paywall

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.

Read next