Shares of Fortune Brands FO are spiking this afternoon on large volume as unconfirmed LBO speculation caught the ears of traders.
Fortune Brand’s shares are up .80 or 1.5% to 55.50. If Fortune shares can make it through 55.50 upside momentum could carry the price higher.
Sources close to the situation state Bill Ackman and the company have been in talks, Ackman is still pushing for a breakup of the company’s spirits, golf equipment and home hardware business
Options traders drove the November to 30 as trades purchased the November 60 and December 60 calls. Volume of 1300 calls vs. 700 puts have traded.
If you notice the hell of a ramp into the close , as 56.45 was peirced she rallied clear to 59.72 in once big candle. Clearly there is some legs behind this rumor as buying into the close on a Friday with the index’s on overbought shaky ground is very bullish.