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