| Japanese automaker Honda Motor Co. has | | | | operated business with a high margin |
| recently denied rumors alleging that it | | | | profile and it's not a good business |
| will buy Harley-Davidson Inc., which | | | | sense for an LBO investor to shell out a |
| caused the US motorcycle maker's share | | | | significant premium and be able to |
| to rise in New York last Friday. | | | | generate a fitting return. |
| But just in case Honda and Harley do | | | | Harley's share gained as much as 6.4 |
| combine, their union would be able to | | | | percent before closing last Friday's |
| control 65 percent of the US motorcycle | | | | session by $2.43 or about 4 percent at |
| market while its next leading competitor | | | | $62.55 on the New York Stock Exchange. |
| Yamaha will be left with only 16 | | | | On the other hand, the shares of Honda, |
| percent. Such type of stronghold on the | | | | the world's biggest motorcycle maker and |
| motorcycle market would definitely not | | | | producer of high quality Honda exhaust |
| please the Federal Trade Commission. | | | | system have gained very little increase |
| Honda through its spokeswoman Yoshido | | | | in Tokyo with only 0.5 percent last |
| has extended their stand on the issue. | | | | Monday at 4,420 yen. |
| According to Honda spokeswoman Makiko | | | | Honda Tidbits |
| Yoshida in Tokyo last Monday, "There's | | | | For the past 50 years, Honda has made |
| absolutely no truth to it." | | | | racing as its training ground for |
| Amidst doubts from analyst and market | | | | challenging the abilities of both its |
| participants, Harley-Davidson shares and | | | | engineers and designers. Soichiro Honda |
| options were able to increase with | | | | said that the pressures that people gets |
| 58,535 options last Friday which is | | | | from racing encourages them to seek for |
| fourteen times more than the daily | | | | innovative solutions and demands fast, |
| average that is basing from the figures | | | | precise responses to new problems that |
| gathered by market research firm Track | | | | they have not encountered before. |
| Data. | | | | This is also the very reason why racing |
| RBC Capital Market Analyst, Edward Aaron | | | | is embedded in the corporate culture of |
| in an interview with last Friday said, | | | | Honda. Aside from that racing also |
| "I'd be surprised if there was a Honda | | | | teaches people how to work harmoniously |
| and Harley-Davidson combination, | | | | with each other since in racing no |
| basically for regulatory and cultural | | | | single individual can bring success to |
| reasons." He also added, "Harley is an | | | | the team because it is a group effort. |
| iconic, American brand. I don't think it | | | | Throughout the racing history of Honda |
| would be a great fit if they were under | | | | either it be in two wheels or four, the |
| the ownership of a larger Japanese | | | | Japanese automaker has been able to win |
| corporation." | | | | at the highest levels. From the Isle of |
| Aaron further stated that it was | | | | Man TT motorcycle race to Formula One |
| unlikely that Harley would become the | | | | Grand Prix, Honda was able to obtain 60 |
| target of a buyout. He said, "Although | | | | race victories and four consecutive |
| an LBO is more plausible than a merger | | | | Constructors' Championships from 1988 to |
| with Honda, the math behind such a | | | | 1991. Various Honda models are displayed |
| transaction is not highly compelling." | | | | in victory lanes around the world. |
| And besides Harley is already a well | | | | |