ServiceMaster (NYSE:SVM) may be attracting some private equity firms, according to an article in the Wall Street Journal. There is talk on the street that the $3.2 billion company's healthy cash flows combined with shareholder unrest may prompt private equity firms to take action or perhaps even lead to a management buyout. The only argument against the notion is the company's strong religious culture; however, that did not stop other bids for the company in the past that were rejected. Shareholders may be more likely to support a buyout now, however, as the company's performance has stalled while its brands and image remain intact. The company's policy is to not comment on rumors; however, the company's stock moved up over 6% in morning trading on the news. This is definitely a stock to
keep an eye on in the coming weeks in case any further evidence comes out supporting such actions.
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