NEW YORK ( TheStreet) -- Harley-Davidson ( HOG) stock has shot up 5% to $27.80 upon rumors that private equity groups are approaching the company with a buyout offer.
Reuters has reported that there's been talk that private equity firm Kohlberg Kravis Roberts could be a possible Harley courter. About 5.5 million Harley-Davidson shares are trading hands midday Tuesday, which is well above the roughly 3.3 million three-month average trading volume. The rumored offer comes as Harley-Davidson experiences a dip in business, as wallet-conscious customers hold back on motorcycle purchases amid economic uncertainties. To cope, the company has implemented cost-cutting measures such as plant closures and workforce reduction. Harley-Davidson reported a net loss of $218.7 million, or diluted losses per common share of 94 cents, in the fourth quarter, versus $77.8 million, or 34 cents, in the same period last year. -- Reported by Andrea Tse in New York