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Banking, finance, and taxes

Cardinal Denies Buyout Rumors (CAH)

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By Jon C. Ogg Updated Published
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Cardinal Health, Inc. (NYSE: CAH) is breaking ranks by responding to market rumors that have had shares higher all day.   The company noted, “While it is our longstanding practice not to respond to market rumors and speculation, we are making an exception in this limited situation. Cardinal Health is not in discussions with any party regarding an acquisition of Cardinal Health. We do not expect to have further comment on this matter.”

In other words, if a deal is coming it is a hostile one that has not been hinted at to members of its senior management.  Does that mean a deal cannot come? No.  It just means that the company is not engaged in discussions.

Frankly, the $11.6 billion market cap seems a bit high for the type of rumors that it might go private.  With shares up 25 at $33.08, the 52-week trading range is $28.22 to $36.66.

Options had been active based upon the rumor mill.  The NOV-2010 $35 CALLS traded some 8,072 contracts today versus a prior open interest of only 359 contracts.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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