Trading was halted last Wednesday in shares of Western Star Holdings as the specialty truck manufacturer announced it was in discussions with a third party about a possible merger.
Before the announcement, the company's stock on the Toronto Stock Exchange rose 24% to C$23.50 amid speculation — triggered by an item from Chicago-based Stark's News Service — that Freightliner had made a buyout offer.
At Freightliner headquarters in Portland, Ore., and at Western Star's base in Kelowna, British Columbia, spokesmen refused to comment on Stark's story.
Western Star manufactures heavy-duty trucks in that city, as well as North Charleston, S.C., through subsidiary Western Star Trucks. It supplies transit buses for the North American market through its Orion subsidiary.
The company's stock price rose further when trading reopened on Thursday, hitting new highs.
