LG Electronics shares went on a rollercoaster ride on Wednesday on rumors that Google was set to acquire a significant stake in the Korean consumer electronics maker.
LG shares started down, but began to skyrocket at around 10:40 a.m.
Rumors spread on mobile messaging services that Google was set to acquire a 35-percent stake in LG Electronics worth around W2.5 trillion in after-hours trading, overtaking LG Corporation to become the largest shareholder.
They even included an alleged statement by Google saying its stakeholding represents a strategic investment in LG's smartphone, Internet of Things and unmanned automobile businesses but does not entail management control.
LG shares surged 14 percent at one point in the days' trade. But LG flatly denied the rumor, causing the shares to plummet by around the same margin and close at W43,650 per share (US$1=W1,153), up only 3.07 percent from the previous day.
A total of 6.35 million LG Electronics shares were traded in the flutter, a record amount and over four times more than the previous day.
One industry source said, "How could it be possible to acquire a 35-percent stake in LG Electronics unless you were buying it from LG? The rumor doesn't make any sense and seems to have been spawned by recent weakness in the share price.
