RCA Stock Slips in Heavy Trading Amid Rumors of Buyer for Hertz
Trading was heavy in shares of RCA for the third day Wednesday, but the company would not confirm Wall Street rumors that it had found a buyer for its Hertz car-rental subsidiary or was about to make an acquisition for its NBC or electronics units.
RCA stock closed at $45.375, off 25 cents, on volume of 892,400 shares. On Tuesday, the shares rose $1.50 to $45.625 on trading of 1.04 million shares. On Monday, the shares were up $1 to $44.125 as 1.05 million shares changed hands.
Neither New York-based RCA nor securities analysts could account for the increased trading. “If we were talking to anyone or even close (to an acquisition or sale), we would have to make an announcement,” a spokesman said, referring to disclosure requirements of the Securities and Exchange Commission.
RCA has been trying to sell Hertz, the nation’s biggest car-rental company, since the early 1980s, when increased competition cut that industry’s profit margins. In April, 1984, RCA sold its CIT financial-services division to Manufacturers Hanover for $1.5 billion and reiterated its intention to focus on its traditional core businesses of communications, electronics and entertainment.