STOCKS TO WATCH: Takeover talk may rev up troubled plane engine maker Rolls-Royce’s shares when markets reopen
Investors may choose to climb aboard Rolls-Royce when markets reopen tomorrow.
The troubled plane engine maker’s stock has yo-yoed since the pandemic put the brake on travel.
But the shares have just received a surprise lift after a blog post from financial website Betaville said Rolls was about to be involved in a ‘significant corporate transaction’ with an unidentified suitor.
Hard work: The last time Rolls was linked to takeover speculation was after its 2020 cash call
The last time Rolls was linked to takeover speculation was after its 2020 cash call and, before that, in 2015 following a string of profit warnings.
Shares in Rolls’s defence industry rivals have been boosted by the outbreak of war in Ukraine, potentially strengthening their position to snap up struggling competitors.
However, broker Jefferies is circumspect. It says the UK Government’s golden share would deter most bidders.
Arch-rival BAE Systems could be a contender, but a Rolls swoop would be a huge change in strategy, it added.
To complicate matters, newish chairman Anita Frew is hunting for a replacement for long-suffering boss Warren East, who departs at the end of the year.
Could he be dragged into a dramatic final chapter?
Boost for Ted Baker
Ted Baker’s share price has resembled a moth-eaten suit of late.
But the emergence this month of a potential bid from US private equity firm Sycamore Partners has sent the stock up 43 per cent.
That’s bad news for computer-driven hedge fund Voleon Capital.
It closed its short position after the bid emerged.
Keep an eye on SocialAmp
Here’s a long-term bet worth keeping an eye on – digital marketing agency SocialAmp.
The firm was founded by four young British entrepreneurs and counts MTV, Nickelodeon and Boohoo among its clients.
They’ve even convinced billionaire Boohoo co-founder Mahmud Kamani to invest.
The company expects profits of £5million in the next financial year and there could be a flotation within three years. Promising.
New chief at IQE
This week will bring the first appearance of new IQE chief Americo Lemos.
He joins the UK-listed semiconductor maker from New York rival Global-Foundries at a crucial juncture, as supply chain issues continue to cause headaches.
Analysts at stockbroker Peel Hunt expect limited growth this year, but hope that Lemos can move the manufacturer from ‘an order taker to an order hunter’.