Lululemon Athletica inc. (NASDAQ: LULU) is having a relatively strong time in the market at the moment, and for good reason. Rumors are breaking surrounding a potential takeover of the company. Of course, this is leading to investor excitement, prompting gains in the value of the stock. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (1:12), LULU is trading at $52.26 per share after a gain of $0.57 per share (1.10%) thus far today.
LULU Gains On Takeover Chatter
As mentioned above, Lululemon is having a relatively strong time in the market at the moment after rumors broke surrounding the company. According to the rumors, the company is in conversations with a private equity firm regarding a takeover. The rumors suggest that the company will sell at a rate of $80 per share, which would be an incredibly strong premium.
It’s important to keep in mind that we see rumors like this in the market all of the time. However, very few of them prove to be true. In this particular case, the premium the rumor suggests seems a bit high, and the name of the private equity firm isn’t offered. As a result, we’re not expecting this rumor to be valid.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on LULU. In particular, we’ll be watching to see if a takeover is indeed going to take place. While we don’t expect this to happen, anything is possible in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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