Diesel motorhome engine supplier Cummins saw its stock price soar Monday after a portfolio manager speculated that it might become a takeover target.
Cummins gained 5 1/2, or 18%, to close at 36 1/16.
Morgan Stanley Dean Witter Portfolio Manager Bob Marcin was quoted in Barron’s saying General Electric, Fiat, DaimlerChrysler, Deere & Co. or Honeywell International might be interested in buying Cummins.
Marcin believes Cummins stock is worth at least $60 a share, and could reach $100 a share, if there is a takeover contest.
However, Cummins new CEO told Barron’s that he has no interest in selling the company and he does not expect a hostile bid.