cyber defense magazins awards, page-9

Well, here is something I didn't know.  

On 2 July 2015 Covata made the following announcement:

"Covata and NSCglobal join Colt Technology Services to Provide Data Security Solution Safe Share to Global Capital Markets

SYDNEY – 2 JULY 2015 – Leading multinational telecommunications and IT provider Colt Technology Services will make Covata Safe Share available to the financial services sector within their global customer base. Colt Technology Services (LON: COLT) is a European provider of world-class network, voice, data centre and managed cloud services. Colt, headquartered in the City of London, has a market cap of €1.7b and annual revenues of €1.5b for 2014. Colt counts many of Europe’s largest financial services and capital market institutions as core customers and the Safe Share product is to be targeted at this global segment through its new Extranet service.

.........."

We haven't really heard much a bout Colt since then.  I found the following article this evening:

http://www.colt.net/news/colt-prizmnet-us-launch/

"Colt PrizmNet Accelerates Market Connectivity for US Capital Markets Participants

Financial extranet allows capital markets firms to rapidly connect to content providers;
Launch partners include IEX, Moscow Exchange and Nasdaq

New York, NY, 28 October, 2015 – Colt today announced the launch of Colt PrizmNet in the US, connecting providers of financial content – including market data, research and trading services – to capital markets firms, improving trade execution and accelerating global market connectivity. This financial extranet addresses increased client demand for greater transparency and reliable access to new and existing markets, as well as the move to fully electronic traded asset classes including swaps, FX and fixed income."

The following words in the next paragraph is what grabbed my attention:

"Colt is a private company owned by Fidelity, and operates across Europe, Asia and North America."

Owned by Fidelity .....

http://www.bloomberg.com/news/artic...rs-to-buy-colt-valuing-company-at-2-7-billion

So Fidelity must have a very good idea of the potential of Covata.  It begs the question then why they were offered shares (@ $0.20) in Covata at such a significant discount to the prevailing market price (around $0.24 to $0.27) around that time.  When I look at the dip in the share price for a short period during early Nov 2015 now starts to look a little manipulated to me. Check out the chart for yourself.

Not sure I am overally comfortable with this as it would appear that the bid by Fidelity for Colt was at an opportune time and not in the best interest of Colt shareholders.

It would be good to see Colt / Fidelity do something positive for Covata within Prizmnet around the globe that turns into real sales, revenue and profit for Covata.

Need to keep an eye on this relationship as time passes ....