Does this present a Takeover opportunity for you?
Will anything come of this speculation? Could BT shares benefit?
- The Mail on Sunday says BT is seeking advice about defending a potential takeover by Deutsche Telekom
- A 3-year “standstill agreement” has prevented Deutsche Telekom from increasing its 12% stake above 15%.
- The agreement ends Jan 29. Will Deutsche Telekom seek a bigger stake?
- The chart shows the BT share price movements over the last 3 years
- Shares now 239p (at time of writing)
- Will this speculation prove much ado about nothing, or could a deal emerge?
- If speculation intensifies could it drive BT shares higher?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BT – An Example
Let’s say you think that BT is likely to rise further as a result of a takeover offer, towards, perhaps even above, November’s 268p highs. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 239p. To do this, you need £2,000.
For the purpose of this example, let’s assume the BT share price rises by 25%. Your profit would be £2500, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sentiment towards the deal sours and BT shares fall 5% and hit your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.