Speculation intensifies that Krispy Kreme Doughnuts Inc. may be takeover target.

Publication: Herald-Sun (Durham, NC)

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COPYRIGHT 2004 The Herald-Sun

Byline: Brian Louis

Nov. 24--The idea of new owners at Krispy Kreme Doughnuts Inc. used to be unthinkable.

But that was before the high-flying doughnut retailer came to earth. Increasingly, analysts are speculating about the possibility of a sale.

The speculation intensified after Krispy Kreme's worse-than-expected earnings report on Monday, which sent the company's shares down 16 percent. The shares bounced back a bit yesterday, closing 58 cents higher, or 6 percent, at $10.22.

But that modest rally does not come close to erasing the 72 percent drop the shares have suffered this year, and when a company's stock drops sharply it can make them vulnerable to a takeover.

A Krispy Kreme spokeswoman said that the company does not comment...

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