Kimberly-Clark Corporation (NYSE:KMB) remains right around its 52-week high today, after speculation that KC could be a potential buyout candidate continues to resonate in the marketplace. The rumors began after unusual options activity a few months ago sparked investor interest. More recently, an internal e-mail from KC Chairman and CEO Thomas J. Falk reported discussed why the company would be a good takeover target. KC executives based in the Fox Cities, who asked not to be named, told a local newspaper that bonus-eligible executives received Falk's e-mail Wednesday morning. While the letter did not confirm the rumors definitively, they most definitely did not dispel the speculation. The e-mail noted that KC's successful global business operations and strong financial success were the key reasons supporting a buyout.

Many analysts on the street also acknowledge the possibility, citing KC's strong portfolio of brand names, including Kleenex, Huggies, Pull-Ups, Depends, Kotex, and Scott. One of the more prominent analysts, B. Craig Hutson, noted that "While we are unable to substantiate the [leveraged buyout] rumors, we believe Kimberly has characteristics that might make it an attractive LBO candidate". If such a buyout did occur, it would be one of the largest deals ever, with KC's market capitalization currently standing at about $31.6 billion. Regardless, this stock is definitely one worth watching over the next few months.

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