NEW YORK (AP) -- Shares of Pactiv Corp. soared more than 20 percent on Monday as reports surfaced the maker of Hefty trash bags may be ripe for a buyout from investment firm Apollo Global Management.
Shares of the Lake Forest, Ill.-based company rose $5.02, or 21 percent, to $28.99 in morning trading Monday. Earlier the stock traded at $29.41, eclipsing its previous 52-week high. The stock traded a 52-week low of $19.64 in June.
The Wall Street Journal, citing unnamed sources familiar with the matter, said Pactiv is in buyout talks with Apollo, which is based in New York. The sources said any possible sale is a few weeks away.
Representatives for Pactiv and Apollo both said the companies had no comment on the report.
Last month, the packaging products maker posted a 38 percent drop in first-quarter profit on higher raw materials costs due to the price of oil. The company lowered its outlook for 2010 because it said it couldn't pass on the higher raw material costs until the second half of the year.
The Wall Street Journal said it was unclear what a deal would be worth.
Pactiv's revenue in 2009 was $3.4 billion. Pactiv makes foodservice, food packaging, disposable tableware and cookware, besides the Hefty line of products.
Apollo already owns packaging company Berry Plastics Corp.
