Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?Bloomberg News reports that Harris Corp. (NYSE: HRS) denied rumors that it is seeking a takeover. The stock is down 16% on that announcement. However, Harris did say that it has received expressions of interest.
This shows how treacherous it can be to invest in takeover rumors. I reported on such a rumor on May 16. Between that report and Friday, Harris stock rose 6% from $62 to $65.78. But with this morning's denial of takeover rumors, that entire gain is lost -- and more. A look at Harris's stock chart suggests that I was late to the party.
The interesting thing about the denial is that it comes in the wake of reports that Harris had received offers that valued the company at $10 billion -- or $74 a share -- which is less than the $75 to $85 a share it expected. It looks like Harris could be playing a game to encourage a higher bid. I'll keep watching.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.
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