I remember once reading an article about times when the market cap of a company needs to be raised before a takeover.
The reason behind this being that if a takeover price is currently being negotiated at a price (or script value) of $1b but the company being taken over only has a market cap of say $150m, then it means that the buyer is paying seven times the current value.
This often doesn't go down well with shareholders. So the trick is to raise the market cap of the company being bought. An obvious (and very sensible) way to do this is to buy stock in that company.
Just maybe this is what is happening with vla at the moment.
This is just speculation, but we have seen some sustained large buying of the last month.The usual profit taking or pull back just hasn't happened.
As I said, just speculating.
Cheers
I remember once reading an article about times when the market...
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