Does this present a Takeover opportunity for you?
Will RPC get a formal takeover offer? Could RPC shares benefit?
- UK Panel on Takeovers and Mergers extends deadline for Apollo Global Management and Bain Capital to make a firm offer for the company, to 5 Nov
- On 10 Sept, RPC said it was in preliminary discussions with both parties, which may or may not result in an offer.
- The chart shows the RPC share price movements over the last year
- Shares now at 795.4p (at time of writing)
- Will a formal takeover offer materialise? Could expectations of this drive RPC shares higher?
- 8 Oct: RPC says margins and operating profitability in line with management expectations
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading RPC – An Example
Let’s say you think that RPC is likely to rise further as a result of a takeover offer, towards last October’s highs of 992p. You decide to buy exposure to £10,000 worth of RPC using a CFD, at the current price of 795p. To do this, you need £2,000.
For the purpose of this example, let’s assume the RPC 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 a deal turns sour and RPC 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.