The best performer on the S&P/ASX 200 index this morning has been the Lendlease Group (ASX: LLC) share price by some distance.
At the time of writing the international property and infrastructure group's shares are up 8.5% to $13.83.
Why is the Lendlease share price rocketing higher?
Investors have been scrambling to buy the company's shares after a report in The Australian claimed that it was a takeover target.
Lendlease is currently working on a sales process for its engineering and services business, but it seems that someone has its eyes on more than just this business.
According to the report, a major Japanese company, suspected to be Mitsui, is believed to be plotting an acquisition of the company.
The Japanese company is rumoured to be interested in acquiring the company and then breaking it up and offloading different parts to other suitors.
At this stage, though, it is unclear whether an offer has been made and what price has been offered if one has.
What now?
Whilst at this stage this is pure speculation, I do think there's a good chance that these rumours are true.
After all, even after today's gain the Lendlease share price is trading 36% lower than its 52-week high of $21.73 after being sold off following a series of write-downs. At this level I think the company would be an attractive takeover target.
But until the company confirms that this speculation is correct, I would suggest investors stay clear of its shares and focus on other investment options.
I think the likes of Aventus Group (ASX: AVN) and Cedar Woods Properties Limited (ASX: CWP) are trading on attractive valuations and offer generous dividend yields. This could make them good alternatives for the time being.
