Apple Inc. (AAPL) Buyout Rumors Sends Loewe Shares Higher

Apple Inc. (AAPL) Buyout Rumors Sends Loewe Shares Higher
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Apple Inc. (NASDAQ:AAPL) buyout rumors have yet again resurfaced in major media outlets around the world. According to these new rumors, Apple Inc. (NASDAQ:AAPL) is planning to acquire luxury TV-maker, Loewe AG (ETR:LOE) (FRA:LOE), at € 4 ($5.40) a share. The re-emergence of these rumors sent Loewe’s shares up by 40 percent in Wednesday morning trading. The rumors build on similar rumors which emerged last summer, reports AppleInsider.

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Apple Inc. (AAPL) Buyout Rumors Sends Loewe Shares Higher

The first rumor was reportedly leaked by a source, who at the time, said Loewe’s financial advisors had signed off to Apple’s offer. Nonetheless, Loewe firmly dismissed the rumors. This time round however, Loewe has declined to comment on the matter, suggesting that it knows nothing about an Apple Inc. (NASDAQ:AAPL) offer. Apple has also failed to comment on the matter.

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Although both companies have not shared insight on the rumors, the greater majority is inclined to believe that Apple could be genuinely interested in Loewe AG (ETR:LOE) (FRA:LOE). It is argued that Apple’s interest in Loewe stems from the fact that it is looking to make notable inroads in the TV segment. Similarly, the market at large is still wondering how Apple Inc. (NASDAQ:AAPL) will use its bulging $137 billion cash pile. Apple CEO, Tim Cook, in a previous address on Tuesday, talked about acquisitions. Cook remarked that Apple buys small companies every other month. Nonetheless, he maintained that the Apple Inc. (NASDAQ:AAPL) selectively chooses its targets; noting that the company narrows in on targets that not only produce superior products, but that also mesh in well with the culture at Apple.

2013 sales will be good: Loewe

Loewe CEO, Oliver Seidi, in August last year, noted that 2013 sales would be encouraging.  Talking to Reuters, Seidi, at the time, oozed a notably bullish vibe over the company’s future performance. “The trend of increasing revenues should continue next year,” he was noted to have said.

Although it is still too early to tell whether Seidi’s forecast has materialized, Loewe AG (ETR:LOE) (FRA:LOE)’s recent performance suggests that things could be heading south. The German TV-maker’s losses more than doubled to € 29 ($38.97) million in 2012. In addition, the company is in the middle of cutting 1,000 jobs to save costs.

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