Shares of Hertz Global Holdings, Inc. (OTC:HTZG.Q) were up 10% as of 2:00 p.m. EST Tuesday following reports the rental car specialist may be a takeover target.
More specifically, Hertz is spiking amid renewed rumors that activist investor Carl Icahn is in talks with other potential bidders in an effort to acquire the ailing company.
That wouldn't be entirely surprising considering Icahn bought 15 million shares of Hertz last month, after the stock crashed as much as 52% following its painful quarterly earnings report and reduced full-year guidance. In doing so, Icahn more than doubled his stake, and increased his share of the company to more than a third.
However, this hardly guarantees a deal will be made. In the meantime, I think investors would be wise to focus on Hertz's actual business when formulating an investment thesis.