It's pretty darned amazing that Deere (DE) was approached and turned down private equity, according to Citigroup. The stock has rallied up toward the $98 level. Given the relative calmness in options volatility and the share price unable to surge past $98, we suspect that the potential suitors understand that "NO" really means "no" at this point.
UBS later added that DE was merely pointing out that they were approached (CEO and CFO talked to unnamed party) but dismissed the overture and were not promoting at takeover. DE perfers to focus on running its business.
Our take here at the Buttonwood blog is that DE is a very cyclical business to begin with and that for private equity to be interested shows the extent that $$$ are available for deals.
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