STOCKS NEWS EUROPE-Option jumps 20 pct on takeover rumours
Shares in wireless internet hardware firm Option (OPIN.BR) ride their second sharp rally of the week, driven by speculation that the firm, which is battling price competition and customer shifts to cheaper products, is set to be taken over.
The stock rises as much as 20.3 percent to 2.25 euros in heavy volumes on the ongoing takeover talk, traders say, though it stops short of the seven-month high of 2.35 it hit on Tuesday. Option rose 61.8 percent on Monday alone but it remains more than 60 percent below its 52-week high of 5.81 euros.
The company declines to comment on the takeover rumours, which are not unusual for the small Belgian player, but have run fast and furious this week following Nikon's (7731.T) offer last week to buy another struggling Belgian technology firm, Metris METR.BR [ID:nLA503748].
"There's always some speculation around the company - it comes and goes - but now the trading is in unusually heavy volumes. Still, I think there is no news pending," says one Brussels-based trader.
Another notes that U.S. competitors Novatel Wireless (NVTL.O) and Sierra Wireless (SW.TO) are often cited as potential suitors for Option, though he too says there is no concrete reason to believe an offer is imminent.
Reuters Messaging rm://anne.jolis.reuters.com@reuters.net ($1=.7126 Euro)
