Shares in the truck technology company WABCO Holdings, Inc. (NYSE: WAB) surged more than 8 percent to $139.70 as it confirmed rumors of a takeover bid from ZF, a competitor in the truck market.
ZF has confirmed that it is in talks to acquire WABCO, which was founded 150 years ago and produces transmissions, braking systems and steering equipment among other products for trucks, cars and buses.
In a statement to the market, WABCO said, “In response to market speculation and noting recent appreciation in its stock price, the company confirmed that it has been approached by ZF Friedrichshafen AG and has engaged in preliminary discussions concerning a potential transaction.”
However, the company cautioned that there can be no assurances that a deal can be achieved.
Trading in WABCO shares was stopped on February 27 as news of the potential takeover saw the company’s share price surge 8.07 percent.
Speculation on the deal has come following strong sales results by WABCO for the full year 2018, which saw sales reach a record $3.831 billion, up 15.9 percent from a year ago.
Commenting on the results, Jacques Esculier, WABCO Chairman and CEO said, “Marking its twelfth consecutive year of solid outperformance of the commercial vehicle industry, WABCO also delivered record performance operating income of $545.7 million and record annual earnings per share on a performance basis, up 14.7 percent versus a year ago.”
Earlier this month the company had announced a $230 million deal to develop and supply state-of-the-art suspensions systems to a leading European supplier of luxury cars.