Speculation on Wall Street early Friday was that Durham-based LED maker Cree (Nasdaq: CREE) might make a buyout offer for LED equipment maker Axitron (Nasdaq: AIXG).

Shares in Axitron rose more than 2 percent to $40.32 in noon trading on the news reports coming from Reuters. Shares reached a high of $40.71 earlier in the day.

TheStreet.com also reported extensively on the story that said Cree might offer some $49 a share for Axitron.

However, TheStreet noted that “an investor should keep in mind that the LED sector is one in which traders have the reputation of planting rumors to drive trading in shares” and pointed out that Axitron’s share price “was not rising to a level that reflected a 38 euro offer.”

Cree shares actually declined a bit on the news 83 cents, or 1.2 percent, to $66.39.

Cree is in the process of expanding its work force and facilities in Durham. The company raised $400 million in October of 2009 for expansion plans.

For TheStreet report, read here.

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