UnumProvident Corp. (NYSE:UNM) is higher by around 9% in today's trading on takeover rumors. Sun West of Canada has been quoted as one of the potential suitors, although no information has been confirmed. The speculation came as a result of unusual options activity earlier today (large buying of call options), which typically occurs when there is a takeover story, LBO, or other similar event that would spike the price. The company would not make a bad acquisition for the right company, as it is trading below enterprise value with a forward PE of just over 12x. Moreover, the company has a decent cash position with very little debt. This is definitely a company worth keeping an eye on incase these rumors materialize.
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