INVENTORIES TO WATCH: Is new bidder a stumbling block to the Telit Communications acquisition?
Another twist emerges in the tumultuous acquisition of tech company Telit Communications.
Last month, this column revealed that shareholder and former boss Oozi Cats held out against the offer of £2.29 p-ashare from AIM-listed private equity firm DBay Advisors.
That takeover was approved by shareholders last week, but sources in the city said Swiss chip company U-blox had made a last-ditch effort to mount a counter-offer of more than £320 million.
Crossed wires: why the U-blox approach was not revealed to the market by Telit or the Swiss company remains a mystery
They said U-blox, which is advised by Credit Suisse, offered £2.60 per share in cash for Telit shortly before the vote.
Why the U-blox approach was not disclosed to the market by Telit or the Swiss company remains a mystery.
Now that 75 percent of Telit shareholders have approved Dbay’s offer, it seems a foregone conclusion.
Still, there remains an outside chance that it could be blocked during the court hearing to ratify the accord.
Telit declined to comment and U-blox did not respond.
Hut Group shares continue to fall
The Hut Group had a stormy stock market debut last fall, but shares are down 27 percent this year, closing at £5.86 on Friday.
Now the Swiss hedge fund Psquared Asset Management is the first short-seller to bet against the stock since its IPO, with a short position of 1 percent.
Last year, the fund successfully closed a short position on fellow e-commerce specialist Boohoo. Could this be another smart store purchase?
Investors await HSBC dividend news
HSBC will wrap up its banking reporting season tomorrow with the eyes of investors keenly focused on its dividend intentions.
Britain’s largest bank returned to paying divisions in February, but failed to announce its usual quarterly payout in April.
Chief executive Noel Quinn has indicated that the board would consider an interim dividend.
The bank generates most of its profits in Asia, which has recovered faster than the West from Covid, and City scribblers are posting annual profits of $14.9 billion, up from $8.8 billion a year ago.
But equities have underperformed other UK lenders and shareholders will hope Quinn can take an optimistic note about the outlook for global economies.
New candidate for Sanne Groep?
There are rumors that the FTSE 250-listed Sanne Group may have attracted a new suitor.
The fund management firm agreed to discuss a takeover approach to private equity firm Cinven for £8.75 per share, valued at £1.4 billion, after rejecting previous rapprochements.
Talks have been going on for months, but Cinven may face competition.
Sources say a potential intruder could be SS&C Technologies, the world’s largest manager of hedge funds and private equity funds.
Sanne’s shareholders can now eagerly hope for a higher offer. Sanne didn’t want to respond. SS&C has not responded.