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RH, WSM: Restoration Hardware Holdings Inc Stock Spikes on Williams-Sonoma, Inc. Buyout Rumors

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Restoration Hardware Holdings Inc ( RH ) stock jumped on Wednesday following rumors of a Williams-Sonoma, Inc. ( WSM ) buyout.

Rumor claims that Restoration Hardware and Williams-Sonoma are in talks for an acquisition. This rumor claims that WSM is considering shelling out $50 per share for the home furnishings retailer.

BB&T analyst Anthony Chukumba said that a buyout of Restoration Hardware by Williams-Sonoma would make sense. He also noted that company's recent poor quarter and problems with keeping supplies of its RH Modern collection as reasons for the acquisition.

"While we believe RH management could potentially oppose a transaction, citing the company's fairly recent glory days, we think continued struggles and/or the involvement of an activist investor could leave it with no choice but to explore a deal," Chukumba wrote in a letter to investors obtained by Investor's Business Daily .

RH shares were up 7% and WSM shares were up 3% as of Noon Wednesday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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