Tuesday, May 01, 2007
Vardy share price movement cited in FT study
THE RISE in the price of Reg Vardy shares 4-days before Pendragon made its £467m offer for the Sunderland retailer has raised a few eyebrows.
An independent study by the Financial Times into the share price movements of some UK bid targets over the past two years reveals several examples where share prices rose significantly more than normal just before the bids were announced.
Shares in Reg Vardy, for instance, rose 8.2% relative to its sector four days before the Pendragon bid in 2006.
Such a share price movement was so rare it had a one in 3.5m chance of happening.
DATED: 01.05.07
FEED: AW
An independent study by the Financial Times into the share price movements of some UK bid targets over the past two years reveals several examples where share prices rose significantly more than normal just before the bids were announced.
Shares in Reg Vardy, for instance, rose 8.2% relative to its sector four days before the Pendragon bid in 2006.
Such a share price movement was so rare it had a one in 3.5m chance of happening.
DATED: 01.05.07
FEED: AW
