GNC Holdings (NYSE: GNC)
GNC Holdings is having a pretty good start to the trading session today as takeover rumors start to fly. As soon as the rumor started, the stock jumped, prompting our partners at Trade Ideas to alert us of the movement. At the moment (10:02), GNC is trading at $7.06 per share after a gain of $0.07 or 1% thus far today.
GNC Takeover Rumor
As mentioned above, GNC is having a strong time in the market, at least at the moment, thanks to rumors that the company will be taken over. The rumor suggest that JD.com is currently in the process of raising funds in order to make a bid for the company.
It’s important to keep in mind that at the moment, there is no confirmation surrounding the rumors. Not to mention that the source of the rumor is social media and impossible to track to the beginning.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to watch GNC closely to see if there is any validity to the rumors. However, we do not expect that this acquisition is going to happen. First and foremost, the two companies don’t sync well at all. That, on top of the fact that JD.com would have to raise funds in order to even make a bid simply doesn’t make sense. Sure, it was good for a nice quick pop in the stock, but don’t get your hopes up.
What Do You Think?
Do you think GNC will be taken over by JD.com? Join the discussion in the comments below!
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