Bryan's Blog

Reuters and other news services reported that Harley-Davidson shares jumped seven percent today based on rumors that The Motor Company is headed for a leveraged buyout by Kohlberg Kravis Roberts & Co., a New York- based private equity firm. Harley stocks finished at $28.35 and more than 18 million shares were traded, an amount that is six times the normal volume.

So far both Kohlberg Kravis Roberts and Harley-Davidson are mum about the rumors, but regardless of the truth, it still boosted H-D shares to its highest level in a long time. At the beginning of the year, Goldman Sachs downgraded Harley’s shares to sell and lowered its target price to $11. Harley-Davidson shares once peaked at $75.87 in November of 2006.

A little over a year ago, Warren Buffet’s Berkshire Hathaway invested $300 million in The Motor Company at a 15 percent annual interest rate. Concurrently, Davis Selected Advisers, L.P. also bought $300 million in senior unsecured notes that will come due in 2014.

Tune in tomorrow for the next episode of ‘As the World of Harley-Davidson Turns.’