Genuine Parts shares jumped 13% after a report that O'Reilly Automotive made a cash bid for its auto-parts division, while O'Reilly fell 4.4%. The automotive-parts arm could be valued at $10 billion or more in a transaction, according to a Bloomberg report citing people familiar with the matter, and a potential sale could be announced by the end of the summer. Genuine Parts may still decide to keep the unit or pursue a spinoff, and another bidder could emerge. Genuine Parts declined to comment and O'Reilly did not respond to requests for comment. The company had announced plans in February to separate into two independent publicly traded companies, one comprising its Automotive Parts Group and the other its Industrial Parts Group, following a settlement with activist investor Elliott Investment Management in September to appoint two Elliott-endorsed board members.
Genuine Parts CoReport of O'Reilly bid for its auto-parts division at $10B+ valuation drives shares up 13%.
O’Reilly Automotive IncO'Reilly fell 4.4% on report it made a cash bid for Genuine Parts' auto-parts arm, likely seen as expensive or dilutive.