Bid speculation delivers red-letter day for UK Business Post
TROUBLED parcels group Business Post enjoyed a much needed boost yesterday, surging 13pc to 413½p at one stage, on the back of takeover speculation.
The shares have slumped from 652p since the company sounded a profits warning in September, and have been weighted down further by worries that the group is at risk of falling out of the FTSE 250 in next month’s quarterly reshuffle of the index. Yesterday, the shares ended the day up 35 at 400p.
Rumours initially circulated that the group could be gobbled up by Deutsche Post, although sceptics said the German company already had its hands full with the acquisition of logistics group Exel. Traders then cited US delivery group FedEx as a potential predator, saying the two companies already have a partnership.
However, sceptics said that the bulls could just be trying to push the shares higher following the recent slump in the stock. They also added the stock was tightly held by the founding Kane family, and any takeover would need the family’s support. Business Post’s surge helped lift the FTSE 250 index 92.8 to 7,966.1 – 13.4 shy of its all-time high. The FTSE 100 was also stronger, gaining 73.3 to 5,431.9.
