By Staff writer
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.