Loewe, a luxury German TV brand, saw stock prices soar after a trader claimed that Apple was in the market to bid 4 euros a share for the company.
The rumor set off a chain reaction, causing stock prices to go as high as 3.93, an increase of 44.5 percent from February 12th's closing 2.72 closing price. The price fluctuated throughout the day and eventually closed out at 3.35 on February 13th, an increase of 23.6 percent in just a day.
Rumors of Apple's interest in the company have been around since May of 2012. Despite reports on AppleInside, Loewe refuted the rumors and Apple never commented on it. With Loewe's capitalization reaching nearly $58 million, a buyout could be a smart move for Apple. However, the company would also have to persuade Loewe's executives and Sharp, a major shareholder.
The buyout would be a way out of the difficult TV market that Loewe has found itself in. The company experienced a loss of $39 million in 2012 and is now attempting to cut 1,000 jobs to lower expenses. In an effort to expand its market, Loewe has also branched out into manufacturing Blu-ray Player, multiroom systems, speakers, racks and DVD recorders.
But rumors are just that, rumors and we have yet to see if anything will come of all the speculation. But who knows, maybe Apple is in the market to purchase Loewe and expand into the TV market. We will just have to wait and see if all the hype that increased stock prices is just talk or fact.
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