Heavy duty truck manufacturer Western Star announced Tuesday that it is in discussions with a third party for a possible merger opportunity.
The company gave no indication of who its prospective partner might be, but a likely possibility is Freightliner, owned by DaimlerChrysler, reports the Calgary
. The announcement came on the heels of a request by the Toronto Stock Exchange after Western Star’s shares jumped 24% and trading was stopped.
In a company issued press release,
Western Star emphasized there can be no assurance that any discussions will result in an agreement or transaction.
"The rumour is rampant that it's Freightliner," said Winnie Siu, an analyst at Salman Partners in Vancouver, in aN interview with the Herald
. "That seems like a good likelihood. I think it's a very good fit. Freightliner is also a custom-built heavy truck maker, as is Western Star."
Western Star produces large trucks in Kelowna, Canada, and in North Charleston, S.C., and owns Orion, a maker of buses in Mississauga, Ont., and Oriskany, N.Y. Their financial problems have been a result of the slowing big
truck market in North America.