PARIS (Reuters) – Ocado, a British software and robotics group, has soared on the stock market after reports from The Times on Thursday reporting signs of interest from tech giants for a takeover of the group.
“There are rumors that tech heavyweights like Amazon were considering taking over the group at £8 a share, with Goldman Sachs and JP Morgan said to be representing the bidders,” the Times article reported.
The price target mentioned by the Times represents a premium of 85%, reported to the group price at the close on Wednesday, or 4.30 pounds,
A spokesperson for Ocado declined to comment on the group’s price rise or the rumors raised by The Times.
“With around 14% of the float borrowed (for the short sale), selling the stock short is a popular strategy,” Jefferies analysts note, “and it is in this context that the stock’s rally should be understood.” .
“The reality of a takeover will have to be confirmed by more detail”.
On the London Stock Exchange, Ocado’s share was up 18.65% at 08:30 GMT, to 5.11 pounds.
(Report Corentin Chapron, edited by Kate Entringer)
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