Whirlpool's stocks and bonds rally on report that Bosch may try to buy the appliance giant

By Steve Gelsi

Company's stock rises by 13% and bond spreads tighten by 30 basis points

Whirlpool Corp.'s stock notched double-digit percentage gains on Wednesday after Reuters reported that Germany's Bosch may try to buy the rival appliance maker.

Citing three unnamed sources familiar with the deal, Reuters reported that Bosch is considering a bid for Whirlpool (WHR) to increase its presence in the market for washing machines, dryers and other household appliances.

In an email to MarketWatch, a Whirlpool spokesperson said the company does not comment on speculation. MarketWatch also reached out to Bosch for comment.

Whirlpool's stock rose by 13% to $98.51, its highest level since April.

The company's bonds also saw net buying, and spreads tightened significantly, with the 5.75% notes that mature in March 2034 up by as much as 30 basis points from Tuesday's close. Spreads are the extra compensation bondholders demand for taking on the extra risk of corporate bonds.

The bonds were issued in February and are rated Baa2 by Moody's Investor's Service and BBB-minus by S&P Global Ratings.

The price of the bond climbed above 101 cents on the dollar from below par late Tuesday.

Whirlpool has more than $7 billion in outstanding bonds, according to FactSet. About $350 million of notes will mature in 2025, followed by $700 million in 2029.

Bosch has said it's looking at acquisitions, but in this case, the Reuters report said the company is not yet certain if it will make a play for Whirlpool.

For its part, Whirlpool has been revamping itself by folding its European business into a company controlled by Turkey's Arcelik (ACKAY). It also sold businesses in Africa and the Middle East.

Whirlpool, with its $5 billion market capitalization, would be a major deal for Bosch. Whirlpool's brands include Maytag, KitchenAid, Gladiator, Affresh and Everydrop.

Prior to Wednesday's moves, Whirlpool's stock had dropped 28.5% in 2024, compared with a 14.7% rise by the S&P 500 SPX.

-Steve Gelsi

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06-26-24 1130ET

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