STOCKS TO WATCH: Is new bidder a stumbling block for Telit Communications takeover?
Another twist emerges in the tumultuous takeover of tech firm Telit Communications.
Last month, this column revealed that shareholder and former boss Oozi Cats was holding out against the £2.29½p-ashare bid from AIM listed private equity firm DBay Advisors.
That takeover was approved by shareholders last week but City sources said Swiss chip company U-blox had made a last-ditch effort to mount a £320million-plus counter-offer.
Crossed wires: Why the U-blox approach was not disclosed to the market by Telit or the Swiss firm remains a mystery
They said U-blox, which is advised by Credit Suisse, offered £2.60 a 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 firm remains a mystery.
With 75 per cent of Telit’s shareholders approving the Dbay offer, it appears a done deal.
Still, an outside chance remains it could be blocked at the court hearing to sanction the scheme of arrangement.
Telit declined to comment and U-blox did not respond.
Hut Group shares keep falling
The Hut Group had a barnstorming stock market debut last autumn, but the shares have tumbled 27 per cent this year, closing at £5.86 on Friday.
Now Swiss hedge fund Psquared Asset Management has become the first short-seller betting against the stock since flotation, with a 1 per cent short position.
The fund last year successfully shorted fellow e-commerce specialist Boohoo. Could this be another savvy retail purchase?
Investors await HSBC dividend news
HSBC will round off the bank reporting season tomorrow with investor eyes keenly trained on its dividend intentions.
Britain’s biggest bank returned to paying divis in February but didn’t declare 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 more rapidly than the West from Covid, and City scribblers are pencilling in annual earnings of $14.9billion against $8.8billion a year ago.
But the shares have underperformed against fellow British lenders and shareholders will hope Quinn can strike an upbeat note on the outlook for global economies.
New suitor for Sanne Group?
There’s chatter that FTSE 250-listed Sanne Group may have attracted a new suitor.
The fund administration firm agreed to discuss a takeover approach from private equity firm Cinven at £8.75 a share, valuing it at £1.4billion, after rejecting earlier overtures.
Talks have been ongoing for months but Cinven may be facing competition.
Sources say one potential interloper could be SS&C Technologies, the world’s largest hedge fund and private equity fund administrator.
Sanne shareholders may now be eagerly hoping for a higher bid. Sanne declined to comment. SS&C did not respond.