Rumors of a pending bid by Swedish appliance giant Electrolux to buy out Maytag were reflected in the volatility of Maytag stock this week, with shares rising and falling as much as 7 percent since May 12.
Electrolux managing director Michael Treschow would not comment on the company’s acquisition plans, but helped squelch speculation by denying that specific talks were being held with the domestic majap maker.
“There are a lot of acquisitions in our track record,” he told the Reuters news service, acknowledging the company’s history of growth by buyout. “That strategy is still valid, in all of our markets. As usual, it’s a case that if the right opportunity turns up at the right time, then we’re interested in making an acquisition.”
Maytag shares hit a weeklong high of nearly $37 on Wednesday in unusually heavy trading, although Electrolux stock remained relatively unchanged at 165 Swedish crowns ($17.92) a share. Earlier this month, Electrolux bought back the rights to its own brand name in the United States for $50 million.