News: Forge chief shrugs off takeover speculation

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Forge Group Limited’s (ASX:FGE) chief has shrugged off speculation the engineering company is a takeover target following its significant share price spike over the past week.  

 

CEO David Simpson reportedly denied the rumours when asked by media and instead pointed to the company’s latest contract awards as reason for the gains. 

Forge yesterday responded to its second price query from the Australian Securities Exchange in under a week.

After surging more than 50 per cent yesterday the company highlighted its $830 million contract award to work on Gina Rinehart's Roy Hill iron ore project in Western Australia.

After surging more than 40 per cent last week the company could only attribute the prior week’s $40 million worth of contract awards for the rise.  

The gains come after Forge dramatically plunged 90 per cent on the back of a profit warning issued in November.

Forge Group reported a net profit of $62.9 million in the 2013 financial year.