Bloomberg News

Titanium Metals Shares Surge on Takeover Speculation

March 23, 2010

Titanium Metals Corp. (TIE:US), the Dallas- based supplier of the lightweight metal to Boeing Co. (BA:US), rose the most in more than four months amid speculation the company may be a takeover target.

Titanium Metals climbed $1.39, or 9.3 percent, to $16.29 at 4:03 p.m. in New York Stock Exchange composite trading (TIE:US), the biggest gain since Nov. 16. More than 43,000 calls to buy the stock changed hands, about 20 times the four-week average and eight times the volume for put options. The most-active contracts (TIE:US) were April $16 calls, which rose fourfold to $1.

There has been some “chatter” that the company could be an acquisition target, said Chris Rich, head options strategist at JonesTrading Institutional Services LLC in Chicago.

“If you thought there was going to be a takeover, this would be the option where you would get a lot of bang for the buck,” Rich said of the April calls. “The fact that people are buyers and coming and buying them in significant volumes; those that speak with their wallets speak the loudest.”

John St. Wrba, vice president and treasurer of Titanium Metals, didn’t return calls for comment.

Titanium Metals has a market capitalization of about $2.93 billion. In the past 12 months in the U.S., there were 106 announced transactions for metal and mining companies with an average size of $102 million, according to Bloomberg data.

To contact the reporter on this story: Edmond Lococo in Boston at elococo@bloomberg.net.

To contact the editor responsible for this story: Kevin Miller at kmiller@bloomberg.net.


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Companies Mentioned

  • BA
    (Boeing Co/The)
    • $124.67 USD
    • -2.71
    • -2.17%
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