Does this present a Takeover opportunity for you?
Will Inmarsat get yet another takeover offer? Could the shares benefit?
- Inmarsat is considering a $3.3bn takeover bid from a private equity consortium.
- The group is offering $7.21/545p per share, a 25% premium to last closing price.
- Shares now trade at 514p (at time of writing)
- Will the Inmarsat shares close the gap to the implied share price? Can the consortium improve its offer further?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Inmarsat – An Example
Let’s say you think that Inmarsat is likely to rise further as a result of a takeover offer, towards August 2018 highs of 583p. You decide to buy exposure to £10,000 worth of Inmarsat using a CFD, at the current price of 514p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Inmarsat share price rises to 583p (+13.4%). Your profit would be £1340, 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 a deal turns sour and Inmarsat 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.