MEMC takeover rumor pops up again
Bloomberg, picking up on heavy options trading, reports that takeover rumors are once again swirling around MEMC Electronic Materials. The story notes that current-month call options, giving investors the right to buy MEMC shares for $13 on or before Nov. 20, jumped 57 percent today to 55 cents. The shares themselves gained just 2.4 percent, closing at $12.60. Bloomberg quotes analyst Mike Thurow of Susquehanna Financial Group as saying:
It’s been a takeover rumor before and it’s definitely a recurring theme.
He’s right about that. We noted the rumors back in March, and Seeking Alpha reported them in September. Investors should keep in mind that where they see smoke, sometimes there’s fire and sometimes there’s only fog. MEMC shares have fallen 31 percent since the March rumors and 33 percent since their September recurrence.
(3 votes, average: 1.33 out of 5)
Loading ...
David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
