Hedge Fund Reader : Pilkington seem to be a takeover target, run by hedge funds

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September 24, 2005

Pilkington seem to be a takeover target, run by hedge funds

Numerous events have been seen shaping in the industry which is bustling with activities. There are rumors floating around Pilkington, Britain's biggest glassmaker where it lost about 6% of its value with more than 34 million shares changing hand in a single day. It is believed that it was the handiwork of Harry Hedge Funds. It is also believed that the stupendous rise in the share price of Pilkington from 108p to 152 ½p from its low this year may have come to full stop. But the story behind it still shows a different picture, this volatility in the stock price is due to the rumor of being a take over target for an asking price of £2 billion. This has been double the bid price which was about two years back. Pilkington has been a target since the company is facing increased competition and rising costs. Although it seams uncertain when the stock price would be streamlined, but surely there is a lot of action one can expect at this counter for a couple of months. Black Enterprise.com Reports:

Pilkington has been buoyed by talk of a Pounds 2 billion bid. The group is probably one of the stock market's longest-running bid targets, having been tipped by City speculators every year for the past decade. The company's value has doubled in the past two years.

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September 24, 2005 in Gossip & Scandal, Regulation, Strategy | Permalink