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has reported in its "Inside Wall Street" column that GM Hughes Electronics (GMH – 29.80) could receive a buyout bid from a group that includes Kohlberg Kravis Roberts & Co. The article states that GMH could fetch $60 to $70 per share in the buyout.
GMH has elevated by just over two points, or more than seven percent, in early afternoon trading in response to this development. The security, though, remains beneath all of its significant short-term and intermediate-term moving averages as well as its 10-month trendline. The shares also have received support of late from their upsloping 20-month moving average, which has served a perfect support on a monthly closing basis since September 1998.
In GMH's options pit today, it appears that 4,690 contracts have been rolled out from the October 35 put to the November 35 put. These are currently among the most-active puts on the AMEX. What's more, 1,344 contracts have transpired on the October 30 call. These could be liquidations, as the option has open interest of 18,287 contracts.