HMV Shares Climb As Takeover Talk Ensues

By Carmen 

RTE reports that shares in HMV (parent company of Waterstone’s) surged as much as 8.9% today in London as traders cited talk of possible private equity interest. HMV said last week it was confident profits for the full year would be in line with restated analyst expectations despite an extremely tough market. The group, which issued a profit warning in March due to competition from supermarkets and the Internet, said it had struggled during recent weekends as hot weather kept shoppers off the high street. The Telegraph was more modest in its report, saying that the stock could be rising due to bearish investors buying back shares to close their positions.