Kodak Shares Jump on Buzz of HP Interest

Shares of Eastman Kodak Co. rose the most in more than a year Thursday on renewed speculation among traders that the company might be purchased by Hewlett-Packard Co.

Shares in the world’s largest photography company jumped $1.20, or 4.9% to $25.57, the biggest increase since July 21, 2004. Before Thursday, they had fallen 24% this year.

“I can’t believe the shares keep moving on these rumors,” said Jamelah Leddy, an analyst at McAdams Wright Ragen in Seattle, who rates Kodak shares “buy” and owns them. “Kodak management is focused on making the company successful on its own. But every company is for sale at the right price.”

Antonio Perez, who took over as chief executive at Rochester, N.Y.-based Kodak on June 1, helped build Hewlett-Packard’s digital-imaging and electronic-publishing businesses in the 1990s. He has since recruited other Hewlett-Packard executives as Kodak shifts from film to digital products for consumers, healthcare providers and commercial printers.

“We don’t comment on any movements in our stock price,” said David Lanzillo, a Kodak spokesman. Ryan Donovan, a spokesman for Palo Alto-based Hewlett-Packard, said the company didn’t comment on rumors or speculation.

Kodak, which had revenue of $13.5 billion last year, is the biggest seller of digital cameras in the U.S. Hewlett-Packard, which had sales of $79.9 billion in 2004, ranks first in printers of all types. Similar speculation sent Kodak’s shares up 2.5% on July 13.