Financial markets are reacting to rumors Wednesday that Apple is preparing to offer a bid to purchase Loewe, a German luxury TV company, as reported by Reuters. Rumors of an Apple buyout first surfaced in May 2012, but were denied by the German firm, with Loewe representatives telling the press at the time that there was “absolutely nothing to it.”
Loewe produces high-end televisions and other home theater equipment with sleek modern designs, something that fits well with many of the products produced by Apple. If the purchase rumors are true, Loewe’s intellectual property and talent would almost certainly be put to use on the long-rumored Apple television.
Current Designs of Loewe Televisions
Regardless of their veracity, traders are acting on the rumors, sending Loewe shares up nearly 40 percent in mid-day trading on the German XETRA exchange. Traders told Reuters that the Cupertino company was prepared to bid €4 per share (about US$5.40), a nearly 44 percent increase over the day’s opening price.
In addition to its intriguing designs, Loewe is a prime target for acquisition by Apple due to the company’s recent struggles. The firm is in the processing of shedding over a fifth of its 1,000-person workforce after a €29 million loss in 2012. A move by Apple would also represent an interesting strategy to acquire fresh talent as the company fights to justify its growing cash pile.
Loewe AG (LOE.DE) is currently trading at 3.638, up 0.918 (33.75 percent) on the day.