Bellamy's bid lifts China exposed stocksWilliam McInnesA $1.5...

Bellamy's bid lifts China exposed stocks

William McInnes

A $1.5 billion takeover offer for Bellamy's by China Mengniu Dairy Company has lifted a number of other Chinese facing stocks, with investors hopeful another Chinese buying could be on the look out for similar historically 'cheap' stocks.

While Bellamy's shares have shot 54.7 per cent higher this week, just shy of the 59 per cent premium China Mengniu Dairy was paying to its Friday closing price, the price of a number of other companies has a
lso risen.

Wattle Health is the most notable example, with its shares up 20.3 per cent this week.

Blackmores and Keytone Dairy have also seen their prices increase this week, up 9.8 and 5.8 per cent respectively.

Bubs Australia has risen 4.3 per cent this week. Unlike some other Chinese facing stocks, the company has enjoyed a strong start to the year's trading and its value may be seen as less desirable to a potential suitor.

A2 Milk shares, while firming on Monday, have fallen through the week, now down 5.2 per cent.