Commercial Metals shares surge on takeover speculation

lunedì 22 febbraio 2010 20:32

* Stock up about 14 pct

* Potential acquirers likely to be Nucor, Gerdau Ameristeel

* ArcelorMittal also seen as possible bidder

By Doris Frankel and Antonita Madonna

BANGALORE/CHICAGO, Feb 22 (Reuters) - Shares of Commercial Metals Co (CMC.N: Quotazione) rose about 14 percent and its call volume surged on Monday as takeover speculation swirled around the steel and metal products maker.

Commercial shares rose $1.53 to $16.64 in afternoon trade, after notching a high of $17.20 earlier in the session, on the New York Stock Exchange.

The base of the rumour could be the cancellation of the company's presentation with Morgan Stanley, scheduled for later this week, said analyst Michelle Applebaum of Michelle Applebaum Research.

"Eventually Commercial Metals will be part of a larger organisation, three years, four years down the road. So, whether or not anything is happening right now, it does look as though the speculation is fuelled out of them cancelling a presentation," she added.

Commercial Metals said in a statement it does not comment on unusual market activity.   Continua...