Colt shares rocket as Fidelity makes buyout offer
Shares in Colt surged 20% on Friday after Fidelity said it has made a 190p per share offer for the remaining in the stake in the company it does not already own.
COLT Group SA
189.75p
16:34 09/09/15
Fixed Line Telecommunications
1,811.94
16:40 08/05/24
FTSE 250
20,491.99
16:39 08/05/24
FTSE 350
4,592.23
16:39 08/05/24
FTSE All-Share
4,544.24
17:04 08/05/24
However, Colt's independent directors said they would make no recommendation to shareholders whether or not to accept the offer, which they believe undervalues the company.
Fidelity said that the offer price, which is at a premium of around 20% to Colt’s closing price on Thursday, will not be increased.
The directors of Colt said that the financial terms of the offer may be considered by some shareholders to be acceptable in the circumstances, and that some shareholders may prefer the certainty provided by a cash offer now, rather than waiting to see the outcome of the company’s new business plan.