Sale Rumor Sends Quiksilver Bonds Up 60%

According to an article in this morning's edition of Women's Wear Daily ($$$ link), the DC Shoes division of sportsware maker Quiksilver could be sold to VF Corp in as soon as a few weeks, and that upon a successful consummation of the deal, Nike could purchase Quiksilver outright. Quicksilver, based in Huntington beach has not made any official comments on the matter.

Troubled Quiksilver, which last summer sold its Rossignol winter sports business for €100 million to pay down debt, stated at that time it was focusing on its core brands.

The market reacted immediately on the news sending all corporate securities much higher, with ZQK stock up almost 50% to $2.21, while its 6.875% bonds due 4/2015 surging from 31 to a close of 54.75, according to TRACE.