Computer Company Stock Rises on Takeover Speculation
May. 03, 1988
NEW YORK (AP) _ Shares in Control Data Corp. rose sharply Tuesday on Wall Street following a report that the Belzberg family of Canada may be considering making a bid for the computer company.
In midday trading on the New York Stock Exchange, Control Data stood at $26.37 1/2 per share, up $1.50 from Monday, but down slightly from its $26.50 per-share opening.
The Wall Street Journal reported Tuesday that the Belzbergs had acquired a stake of less than 5 percent of the Bloomington, Minn.-based concern's 41.7 million common shares outstanding.
The article said the Belzbergs had been meeting with investment bankers to discuss the feasability of making a takeover bid for the company. But it also noted that the family had slowed its takeover activities in recent months, selling back shares to target companies on several occasions.
A spokesman for First City Financial Corp., the Belzberg's main financial arm, declined to comment on the matter, the Journal said.
On Tuesday, Frank Ryan, vice president of communications for Control Data, told The Associated Press: ''It is our policy not to comment on rumors. That's the only response we can give you.''