Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Elizabeth Arden (NASDAQ:RDEN) were looking delightful today, jumping as much as 17% and finishing up 12% on reports that it may be acquired.
So what: South Korea's LG Household said it was thinking about purchasing the cosmetics maker in an attempt to expand internationally, already having made four recent acquisitions of foreign companies. A company spokesman said Elizabeth Arden was a "potential option" for expansion. Elizabeth Arden, meanwhile, has been struggling of late as shares had fallen nearly 50% since last summer before today's news came out. North American sales have been particularly weak, and overall revenue fell 10.6% in its most recent quarter.
Now what: Elizabeth Arden did not comment on the news, but an interested buyer is obviously a positive sign for shareholders. There was no price range attached to the potential offer, but shares could rise in anticipation of a deal, as the timing seems right with LG looking to expand and Arden trying to re-energize its brand. You can add Elizabeth Arden to your Watchlist to stay on track of any developments with LG.