APC target for Emerson Electric?

KINGSTON — Volume for American Power Conversion options increased dramatically recently, amid rumors that the company might be the target of a takeover by Emerson Electric Co. Both Reuters and a financial Web site sponsored by CBOE were reporting increased activity for APC options, amid speculation that APC would have positive earnings news (scheduled for last Thursday), and the takeover rumor. Both news services were quoting options traders on the Chicago Board Options Exchange, saying that activity on any given day was as much as four times what it is normally. Reuters quotes a trader as saying there is speculation that “Emerson Electric would be looking to buy it. That is the rumor.” On one particular day, for instance there were a total of 14,856 options traded (only 720 were puts, the remainder calls). The daily average for the company is 2,817, according to McMillan Analysis Corp., Reuters reported. A spokeswoman at Emerson Electric refused comment.