Here's something interesting out of London. Note that Electronics boutique PLC trades on the London exchange which is the unit they are speculating the buyout on.
Best Regards,
Mad2
Copyright 1999 Newspaper Publishing PLC
The Independent (London)
July 8, 1999, Thursday
SECTION: BUSINESS; Pg. 25
LENGTH: 1190 words
HEADLINE: MARKET REPORT: US BID RUMOURS PUT ELECTRONICS BOUTIQUE INTO PLAY
BYLINE: Francesco Guerrera
BODY:
THE MARKET plugged into Electronics Boutique yesterday as the videogames retailer was put in play by rumours of US corporate action. Dealers used their computer skills, developed through hours of practice on their Sony Playstations, to click on the "buy" window and send EB more than 4 per cent higher.
At the end of play, the stock was 4p better at 97.5p in respectable turnover of 4.5m shares. The dealing floor's sages believe that EB is set for a major share reshuffle which could pave the way for a bid.
The market's US spies have been told that EB's largest shareholders, a sister company confusingly called Electronics Boutique Inc., is preparing to sell its near 19 per cent stake in the British group.
The Americans built up their holding five years ago when they saved the UK company, then called Rhino, by supporting a rescue rights issue. However, they are believed to have been approached by a US electronics group that is keen to buy into EB following its recent acquisition of competitor Game.
The mooted US buyer might want to go all the way and snap up, Pac-Man- like, the whole of the UK videogame seller at a chunky premium to the current share price. A less popular story suggested that the US shareholder might want to take EB private, hoisting a "Game Over" sign on its life as a public company. On the analytical front, bulls of the stock were buoyed by whispers of a forthcoming "buy" note from broker Merrill Lynch. |
