Shares of Whirlpool (WHR.US), US manufacturer of home appliances, launched today's trading with an over-20% bullish price gap and are holding onto those gains during the cash session. Spike in company's shares was triggered by a report from Reuters.
According to Reuters report, Robert Bosch GmbH, German engineering and technology company, is considering making an offer for Whirlpool. No financial details for the potential offer were disclosed, however. Report was based on insider sources in Bosch, although they warned that nothing has been decided yet and the offer may not be made. Whirlpool has been undergoing restructuring in recent years. Company has been losing market share to competitors and saw its revenue decline as it was divesting from Europe, Middle East and Africa. However, effects of the restructuring are yet to be seen, and current economic environment does not support consumer spending on home appliance products. As recently as 2 months ago in late-April, Whirlpool said that it will cut 1,000 jobs in order to cut costs.
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Open real account TRY DEMO Download mobile app Download mobile appCompany's stock has been trading in a strong downtrend over the past 3 years and dropped around 65% from highs reached in May 2021. News of potential takeover by Bosch sent Whirlpool's share around 17% higher at the launch of today's trading on Wall Street. However, those gains have been being erased as the cash session progresses. Stock reached a daily high near $103.40 per share but has since pulled back below $100 mark and is now attempting to break back below the $98 price zone.
Source: xStation5
