Shares of Nissan Motor showed the most aggressive jump in 15 years after information about the purchase of 2.5% of the troubled Japanese automaker by an activist investor, Bloomberg reports.
A turning point
The jump marks a turning point for Nissan shares. It fell sharply last week after the automaker cut jobs and said it would cut production capacity by a fifth. Nissan also cut its financial forecasts for this fiscal year.
In a statement, Nissan said that the 2.5% stake buyer is Suntera (Cayman) Ltd.
In a statement, Nissan said it is “in constant communication with institutional investors and analysts from brokerage firms.” The company added that it could not determine whether Effissimo actually acquired the stake.
Shares rise
As part of the initial reaction, the automaker’s shares rose by more than 20% before trimming the gain to 13%.
Last Friday, the company’s shares fell 10%. They hit a 4-year low after the company posted disappointing quarterly results and announced a 20% reduction in global production capacity.