Loewe soars on rumours of an Apple buyout
SHARES in German TV maker Loewe jumped 32 per cent yesterday following rumours of an Apple takeover.
Online rumours this weekend claimed the tech behemoth has offered €87.3m (£69.6m) for the high-end television maker, which Loewe’s management has been advised to accept.
But despite denials from Loewe, investors jumped on the Frankfurt-listed stock ahead of a claimed announcement by this Friday.
If the speculation is correct, the £70m acquisition would be a drop in the ocean for Apple, whose cash pile exceeds £100bn.
But the offer would be a far bigger deal for Loewe, which made a €10m loss last year.
Hungry Apple fans have been waiting for the Cupertino-based company, which already produces a set-top box, to announce details of an iOS-based television.
The device, dubbed iTV, has long been at the centre of a whirring rumour mill churning out gossip about its specifications. It is expected to be controlled by Siri and could hit shelves within the next 18 months.
Despite the latest Loewe rumours, Foxconn, the Taiwanese company that manufactures many Apple products, seems to be expecting to land the iTV gig. Its chief executive Terry Gou said in an interview with the Chinese press last week that the Foxconn factory is making preparations although production has yet to begin.
Gou pointed to Foxconn’s recent joint venture with Sharp, also rumoured to be building the iTV and owner of a 29 per cent stake in Loewe, as an example of this preparation.
But the TV industry is not booming for all. On Friday, shares in Sony and Panasonic tanked to a three decade low after the Japanese companies posted record annual losses, both citing falling demand for their TV devices. Samsung has also struggled with its lossmaking LCD-screen television arm.