Joy Global shares jump on takeover rumours
Joy Global Inc. (NYSE:JOY), the world’s No.1 underground mining equipment manufacturer, climbed to the most since February 2013 Wednesday amid speculation that the company is a takeover target.
The Wisconsin-based company traded as high as $65.36 in New York today. About 6.2 million shares changed hands by 10:45 a.m., significantly more than the daily average of 1.3 million shares a day.
Overall this year the equipment maker shares have underperformed, hit by poor demand for mining machinery.
Based on the company’s latest results, Joy received poor bookings for equipment across all geographies, except South America and China. In addition, Joy also saw a 25% decline in underground mining machinery orders during the second quarter of its fiscal year.
The US firm experienced instead an increase in underground service bookings as a result of higher component and rebuild activity in regions such as North America and Eurasia.