Rumors swept Wall Street on Wednesday that LabCorp (NYSE: LH) could be the subject of a possible leveraged buyout.
Any buyout would be expensive. LabCorp has a market value of $8.6 billion.
The news triggered a 5 percent jump in LabCorp shares to a high of $89.01.
Shares closed at $87.90.
Trading was heavy with 5.4million shares changing hands. That’s nearly six times the daily average.
The news led LabCorp to issue a statement about the rumors.
The company “is aware of the recent reports regarding possible plans by private equity firms to seek to effect a leveraged buyout of the Company,” LabCorp said. “The Company has no knowledge of any such plans and is not in current discussions with any firms to effect such a transaction. Beyond that the Company intends to maintain its policy of not commenting on market rumors or speculation.”
In other news Wednesday, LabCorp closed on its $241 million acquisition of Medtox Scientific as of Tuesday.