LogEtronics Inc., a Springfield-based computer graphics and photographic reproduction company, sought yesterday to halt speculation about a possible merger or takeover bid by announcing that it is not seeking a merger or negotiating with any buyer and that it knows of no acquisition attempt.
The price of the company's stock has soared for the past two weeks despite depressed earnings and one of the highest price-to-earnings ratios on the Washington Post's weekly 100 Selected Area Stocks. The surge in the price of the stock, from $17.25 to about $22, prompted speculation on Wall Street that a takeover bid is in the works.
LogEtronics said the brokerage houses that make the market in its over-the-counter stock, Alex. Brown & Co. and L.F. Rothschild, Unterberg, Towbin, had advised the company to issue a statement in an effort to halt the rumors.
"They both felt that the amount of speculation about the possibility we were going to be acquired was such that we can't afford not to respond," LogEtronics spokesman M. F. Moser said. "
LogEtronics, founded in 1955, is a major Washington-area industrial company, with 1981 sales of $32.3 million, but its record of consistent profit growth is in jeopardy this year. The company reported a $31,000 loss in the second quarter and expects to take a charge against third-quarter earnings of up to 70 cents a share.