Why General Cable Corporation's Shares Popped 12% Today

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What happened 

Shares of cable manufacturer General Cable Corporation (NYSE: BGC) jumped as much as 12.3% in trading Monday after announcing a strategic review. At 3:50 p.m. EDT, shares were holding at a 10.6% gain on the day.

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So what

Management announced that it has engaged investment bankers to explore strategic alternatives, including a sale of the company. In other words, management would like to sell the company if a buyer is willing to meet its price.

In the press release, management also said second-quarter revenue would be about $923 million, operating loss would be around $23 million, and adjusted operating income will be $32 million.

Now what

There's no guarantee that any sale will take place, but that's what investors have their eye on today. Management thinks the cable industry is headed for consolidation and, as a small player, wants to get out in front of the change before being trampled. That's probably a good strategy, but we'll have to see whether interested buyers emerge. For now, this is a speculative move that I wouldn't jump on, but if General Cable can find a buyer willing to pay a premium, there's a chance more upside is ahead.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.