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Tuesday, March 23, 2010

Lexmark on the Block? Bank of America speculates "Yes"

Once again, there are rumors of Lexmark's demise.


Oki? Sharp? Brother?

Who shall woo the Lex?

Trading at a 52 week high, the Kentucky based printer manufacture looks to be a good LBO candidate.

Last year, the stock was settling around $15 a share. On Tuesday, it closed at $36.82, up 5.53 percent.

The fact that the stock is trading at its 52-week high makes it attractive.

"These types of deals occur at market tops," said Tom Carpenter, vice president and senior equity analyst at Hilliard Lyons in Louisville.

Carpenter also noted that Lexmark has significantly improved its printers over the past couple of years and focused on segments in which people print more.

Lexmark's market capitalization is close to $3 billion.

And with their focus away from consumer and more towards B2B, they have made some inroads and may be attractive to a more financially sound, tier II player.

Lexmark eyed as takeover candidate

Lexmark Advances on Talk It May Be an LBO Candidate

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