Kumho Tire share price rises on acquisition speculation

Could a conglomerate of South Korean interests be looking at acquiring Kumho Tire? According to the Financial Times, local publication the Korea Economic Daily reports that a conglomerate has shown interest in doing just that through a rights offering.

Following the publication of this news, shares in Kumho Tire are said to have risen by as much as 15.7 per cent before settling to a daily increase of 7.5 per cent KRW 4,320. Nevertheless, main Kumho Tire creditor the Korea Development Bank denies it is in talks with any potential buyer.