no valad reason

http://business.smh.com.au/business/no-valad-reason-for-share-price-spike-20090421-adau.html

No Valad reason for share price spike
Carolyn Cummins
April 21, 2009 - 11:24AM

Beleagured real estate group, Valad Property, has told the Stock Exchange it has no idea of the reasons behind the sudden spike in its securities price.

Valad was today issued with a price query after its rise from 4.2 cents on the close Thursday, April 16 to a close yesterday of 5.8 cents on higher-than-average turnover.

They were recently trading at 5.3 cents, down .05 cents.

There has been persistent speculation that, at these prices, Valad is a sitting takeover target. Competitors, such as Dexus Property, have been named as possible suitors, but so far nothing has emerged.

It has an extensive property portfolio with interests in landmark sites such as the Goldfields House at Circular Quay.

Valad has been one of the hardest hit property trusts over the past year. After having reached highs of up to $2.50, 18 months ago, it has plummeted as investors took a dislike to its large debt and overseas expansion.

Valad was the last of the real estate investment trusts to report its 2008-09 interim result and, like its peers, it suffered a fall in profit because of write-downs in asset values and exchange rate losses.

It reported a loss of $821 million for the December 2008 half, and confirmed the group secured an 11th-hour deal with its bankers. The executives also took a 20% pay cut.

A deal is also being worked on to sell a further stake in Valad to the British Scarborough group and its director Kevin McCabe. If approved by Valad investors, Mr McCabe, who is a Valad director, will hold a 19.9% interest.