NEW YORK (Dow Jones News) -- The stock of instant camera and film maker Polaroid Corp. surged 17 percent Friday after Business Week magazine said the company is a potential takeover candidate.
The article cited rumors that a giant consumer products company, with much marketing clout, is interested in merging with or buying Polaroid. An unnamed strategist at a New York investment bank said Polaroid could be worth as much as $40 a share, or more than $1.75 billion, based on Polaroid's 43.9 million shares outstanding.On Friday, shares of the Cambridge, Mass., company rose $3.25 to $22.25 on the New York Stock Exchange.
According to the article, First Albany analyst Pete Enderlin said Polaroid could sell some assets in a restructuring, raising funds to bring new products to market.
Polaroid unveiled more than 15 imaging products, including Polaroid I-Zone instant cameras and film aimed at kids and its PopShots instant one-time use cameras, at the Photo Marketing Association convention and trade show in Las Vegas.
Calls to Enderlin and Polaroid weren't immediately returned.
One investor said he thinks Joseph Harrosh, who has taken stakes in out of favor stocks as a value play, will join other big holders to put pressure on Polaroid's management for a sale or merger. Harrosh made a filing earlier this month that shows he has a 9.9 percent stake in Polaroid.
Polaroid's stock fell as low as $16.75 on Feb. 1 and reached a 52-week high of $47.43 3/4 on Feb. 23, 1998.