Investing in Harley Davidson: On Honda Radar for Buyout?
By Ian Cooper
“Get your motor running, Head out on the highway, Looking for adventure…” --Steppenwolf
When it comes to the latest, most bizarre Harley-Davidson / Honda rumor, don’t get your motor running just yet, don’t head for the highway, and don’t go looking for adventure.
In the end, both may be singing Jo Dee Messina “Bye Bye” lyrics:
“Bye bye love, catch you later… Got a lead foot down on my accelerator and the rearview mirror torn off. I ain’t never lookin’ back. And that’s a fact.”
As of Friday, about 19,000 July 70 call options traded hands, and was attributed to a rumor that Honda Motor could buy Harley-Davidson. But we’re not holding our breath. While we’re not sure of rumor source, it can be alleged that the rumor was created to get the Harley stock, wrecked recently as Q1 profits fell 18% and weaker demand, back in front page news.
If, for example, a deal was struck the union would reportedly control 65% of the motorcycle market. Yamaha would then own 16%. That alone would make for an unhappy FTC, which isn’t shy about crushing dreams of buyouts. I’m sure you remember the rejection of Whole Foods acquisition interest in Wild Oats.
Plus, let’s be real here, can you imagine if Honda bought Harley Davidson? Harley Davidson is an American company. The culture shock would take some getting used to for Harley employees, and Harley bike fans alike.
Take Care,
Ian L. Cooper
American Capitalist
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