A takeover battle, where multiple buyers compete at the same time to acquire the same company, pushed shares of Spain's Deoleo more than 20% higher on Wednesday morning. Deoleo is the world's largest olive oil bottler and marketer.
The word bottler matters here. A bottler does not grow olives. It sources commodity oil and packages it under brand names for retailers and food-service buyers. Whoever acquires Deoleo gets those brand relationships and the dominant market position in a globally traded commodity.
The contest was described as intensifying on Wednesday, with rivals circling the Spanish company. Rivals, plural, signals at least two parties in play. When more than one buyer pursues the same target, the seller gains negotiating power, and the one certain fact Wednesday morning was that a 20%-plus move had already priced some of that in.