Element Solutions rallies on report it is considering a sale

Investing.com– Element Solutions Inc (NYSE:ESI) rose sharply on Wednesday after Bloomberg reported that the specialty chemicals maker was exploring options including a potential sale.

Shares of the firm surged 9.2% to $26.91, although they did end trading below a three-month high hit during the session. Shares were mildly positive in aftermarket trade.

Bloomberg reported that the firm had hired Bank of America and Goldman Sachs to gauge interest from potential suitors, and is likely to see interest from its peers, or even some financial investors. 

Discussions were still in early stages, and there was no guarantee that a sale would materialize.

Element Solutions produces specialized chemicals used in a wide variety of applications, ranging from automobiles to computing. 

Shares of the firm are trading up nearly 18% so far this year, and had briefly hit record highs in July.