Tecumseh shares rise on denial of buyout rumor

Tecumseh Products climbs as company explores alternatives, denies $8 per share buyout rumor

Associated Press

ANN ARBOR, Mich. (AP) -- Shares of Tecumseh Products Co. jumped to their highest price in more than a year Wednesday after the company said it is looking at strategic options but denied rumors that it received an $8 per share offer from a potential buyer.

THE SPARK: Tecumseh, which makes refrigeration and air conditioning products, said that while it continues to explore alternatives, including a possible sale of the company, it has not received an offer of $8 per share.

THE BIG PICTURE: The Ann Arbor, Mich.-based company said that for the past several months it has been reviewing options with the help of Sagent Advisors LLC.

It added that while it currently intends to continue to look at ways to boost shareholder value, there's no guarantee that a deal will happen.

THE SHARES: Up 64 cents, or 9.1 percent, to $7.70 in afternoon trading, after peaking at $7.99 earlier in the day, marking their highest share price since September 2011.

Tecumseh shares tumbled as low as $3.10 in May, but have rallied in recent weeks, rising 53 percent since the start of this year.