Eastman Shares Rise on LBO Speculation, Traders Say (Update1)

April 25 (Bloomberg) -- Eastman Kodak Co. shares jumped as much as 10 percent, the most since November 2005, on speculation that the world's largest photography company may be a candidate for a leveraged buyout.

``There's some talk of a takeover following the stock around,'' said Christopher Drummond, a New York Stock Exchange floor broker at Morgan Keegan & Co.

Shares of Rochester, New York-based Eastman Kodak rose $2.20, or 9.2 percent, to $26.23 at 4 p.m. in New York Stock Exchange composite trading. The stock advanced as much as $2.59 to $26.62 today. It has fallen 2.9 percent in the past year.

``Some people have mentioned the name as a possible LBO candidate,'' said Kevin Kruszenski, director of equity trading at Keybanc Capital Markets in Cleveland. ``Everything is an LBO candidate these days.''

Kodak spokesman David Lanzillo said the company would not comment on rumors or speculation.

To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.

To contact the editor responsible for this story: Chris Nagi in New York at chrisnagi@bloomberg.net.