C&P
FRIDAY, June 22, 2007, 1:42 p.m.
By Rick Barrett
Sketchy Harley report stirs trading
Trading in options to buy Harley-Davidson Inc. (HOG) shares surged to a record on speculation that the company may be acquired by competitor Honda Motor Co.
Bloomberg News reported that the number of call options jumped to 42,074 contracts, an all-time high, after a writer/analyst for California-based Optionetics.com reported rumors of a potential takeover. Forbes.com early this afternoon reported "dubious" rumors that Honda was a potential suitor.
In a telephone interview with the Journal Sentinel, Optionetics writer/analyst Frederic Ruffy said he knew little about Harley and that he did not cover the company as an analyst.
"But I cover the options market, and I look for unusual activity," he said. "Based on what was going on with Harley-Davidson's options, it seems like people are expecting an announcement."
Ruffy went on to say that he checked several investor Web sites and found rumors that Honda was interested in acquring Harley.
"But I have no idea whether those rumors are credible," he said.
"My gut feeling is that I don't see a takeover of Harley Davidson. At this point I think that it is pure speculation," said George Ries, president of George Reis Investment Group, in Two Rivers.
Harley-Davidson spokesman Bob Klein declined to comment.
Harley shares were up 4% to $62.40.  | 
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