Tuesday, 26 June 2007

Harley surges on Honda talk; skeptics abound

(HOG.N: Quote, Profile, Research) surged on Friday amid speculation Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research) was looking to buy the U.S. motorcycle maker.

A spokesman for Harley-Davidson declined to comment on the talk and a call requesting comment from the U.S. unit of Honda was not immediately returned.

"We don't typically comment on market speculation or on day to day market activity," said Bob Klein, a spokesman at Milwaukee-based Harley.

Several analysts, however, characterized the talk as far- fetched and suspiciously timed.

Tim Conder, an analyst at A.G. Edwards, said he believed the rumor was "false based on several factors," not the least of which was a combined company would control nearly 60 percent of the U.S.

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