GameStop Gains on Takeover Rumors
The video game retailer is climbing 5.6% to $19.31 in afternoon trading as investors mull the probability of it being taken over by a private equity group. “The company generates strong free cash flow and is not getting respect as a public company,” Sterne, Agee & Leach analyst Arvind Bhatia says. Thus, a takeover by a private equity firm, according to Bhatia, would make sense.
In the past there has been speculation that GameStop would be subject to a strategic takeover by a company like Best Buy(BBY). But Bhatia does not think this chatter will resurface.
GameStop declined to comment on the rumors.
This comes ahead of GameStop’s fourth-quarter earnings report, which is due out on March 18.
Industry video game sales, compiled by market research firm NPD, will be released after-market today.
— Reported by Jeanine Poggi in New York. [Read the full article]
Construction equipment maker Terex Corp. said Thursday it has agreed to sell its Atlas heavy construction equipment and knuckle-boom crane businesses.
The company did not say who was buying the units, and the terms of the deal were not disclosed. The company expects to close the deal in the second quarter.
Terex’s heavy construction equipment unit is in Ganderkesee, Germany. The knuckle-boom crane unit is in Vechta and Delmenhorst, Germany.
The company is also selling, as part of the deal, its sales and service business in Bradford, United Kingdom, and its minority ownership stake in a Chinese joint venture. [Read the full article]