Market speculation regarding Monster Worldwide’s sale is driving up its stock price.
Shares for the online job board opened at $48.51 and climbed to $49.51 during trading on Thursday, May 17, but ultimately retreated to $48.36 at the close. After-hours trading took the price to $49. Volume topped 9 million shares traded—an astounding figure, considering Monster's trading averages just under 2.9 million shares daily.
For the company, the surge in price is a welcome respite from the lackluster performance Monster had experienced earlier this year.
Rumors of a takeover intensified Tuesday, May 15, when it became public that Monster was pulling out of a Goldman Sachs conference. Market observers interpreted it as a signal that Monster may be soon be making a buyout announcement. That day, shares climbed $1.16, an increase of 2.51 percent, to close at $47.35.
The surge in price is a much-needed shot in the arm for Monster following a stock options scandal that rocked its leadership and resulted in the resignation of longtime CEO Andrew McKelvey and the firing of general counsel Myron Olesnyckyj, who also held the titles of senior vice president and secretary at Monster.
Monster officials have said that putting itself on the block is not a strategy it is pursuing. However, takeover rumors circulating the market seem to be working in its favor.
An increase in stock price occurred when the company announced the appointment of Sal Iannuzzi as its new CEO. Before coming to Monster, Iannuzzi was CEO of Symbol Technologies, which he helped sell to Motorola. Some market analysts believe he was brought on to Monster to do the same. Since Iannuzzi’s appointment in mid-April, Monster’s stock has climbed by more than $8 a share.