General Mills, Inc. (NYSE: GIS) is having a strong day in the market today, and for good reason. A rumor broke that the company will soon be taken over, causing excitement among investors and leading to gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:16), GIS is trading at $59.00 per share after a gain of $0.83 per share (1.43%) thus far today.
GIS Gains On Takeover Chatter
As mentioned above, General Mills is having a strong day in the market today after news broke that the company may soon be taken over. At the moment, the news is nothing more than a rumor with no verification from either side. Nonetheless, the rumor suggests that Nestle is interested in taking the company over. The rumor does not suggest a price that this may happen at.
This isn’t the first time we’ve seen a rumor like this in the market, and it surely won’t be the last. The reality is that takeover rumors like what we’re seeing surrounding GIS this morning are all too common in the stock market. Very few of these rumors ever turn out to be valid. Considering the vagueness of this rumor and the fact that tracking the source is proving to be impossible, it only makes sense that this one lacks validity as well. So, if you’re going to trade on the news, please be sure to do so with caution.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GIS. In particular, we’re interested in following the story surrounding the potential takeover. While we believe that chances of a takeover are slim, anything can happen, and if a takeover does happen, it could lead to an incredible return of value to investors. So we’ll continue to follow the story closely and bring the news to you as it breaks!
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