(Updates to include the stock movement in the headline, the first paragraphs.)
Magnum Ice Cream (MICC) shares rose over 16% in recent premarket trading after reports that Blackstone (BX) and Clayton, Dubilier & Rice are in the early stages of considering bids for the company, Reuters reported Friday, citing unnamed sources familiar with the matter.
The private equity firms are monitoring the company's share price and awaiting summer performance data before making a decision, the news outlet reported, citing the sources.
Magnum is also attracting interest from other buyout group, as prospective investors view the producer as a turnaround candidate that could increase profitability through cost reductions, the report said.
Blackstone, CD&R and Magnum Ice Cream did not immediately respond to' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price: $17.56, Change: $+2.54, Percent Change: +16.91%