Elk Munches on Bids

Shares surge 23% as the roofing company mulls alternatives.
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shares went through the roof Monday, soaring 23% after the Dallas-based shingler said "several third parties" have indicated interest in buying it.

Elk said it hired UBS to review strategic alternatives that could include a possible merger or sale.

The company also lowered the ownership threshold triggering its poison pill to 10% from 15%.

"ElkCorp's strong market position, healthy balance sheet and our plan for continued growth in all three of our platforms clearly position us as a leader in the building products industry," said CEO Thomas Karol. "That said, several third parties have indicated interest in the company, and our management and the board believe that it is prudent to evaluate all opportunities for maximizing shareholder value."

The company has not set a definitive timetable for the strategic review.

Shares rose $5.77 to $30.95.