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VDM shares suspended after soaring

7th August 2009, 14:15 WST



Shares in mining services group VDM have been suspended after its shares shot up more than 60 per cent in less than one hour.

The shares were trading up 20.5 cents, or 69.49 per cent, to 50 cents when they were suspended at 1.27pm.

Earlier the share price hit a peak of 57.5 cents.

The sudden buying had analysts and investors scratching their heads, with speculation focusing on the possibility of a takeover or management buyout.

One analyst said he did not see VDM Group as an attractive takeover target and believed the price movement was more likely to be based on market speculation or a possible leak about a big contract.


Newsletter Australian Small-Cap Investigator recently issued a wildly bullish outlook on the stock.

However VDM general manager and finance director Peter Simpson told The West Australian the company was not aware of any reason for the share price movement.



LOUISE BURKE