Shares of Modine Manufacturing jumped Friday after Bloomberg News reported that Samsung Electronics is in talks to acquire the Wisconsin maker of cooling systems for data centers. Modine traded near $139 at 1:53 p.m. Eastern, up about $33, or 31%, from Thursday’s close of $106.10. It hit $146.50 earlier in the session.
Bloomberg reported the talks Thursday evening, citing people familiar with the matter, and said a deal could come together in the coming weeks. No price or terms have been reported, and the talks could still fall apart. Neither company has confirmed the talks, and Modine has not filed anything about them with the Securities and Exchange Commission.
Data center cooling has become Modine’s main growth engine. In its fiscal second quarter, reported Nov. 3, Data Centers revenue rose 95% to $439.7 million. But the stock fell 21% the next day after adjusted earnings of $1.35 a share missed analysts’ estimates, according to 24/7 Wall St.
Even after Friday’s jump, the shares remain well below their 52-week high of $323.25. Modine is holding an investor day in Chicago on Nov. 18, an event scheduled before the report.
The figures are from afternoon trading and will change by the close.
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