Does this present a Takeover opportunity for you?
Will anything come of this speculation? Could Spire shares benefit?
- Investec says “Mediclinic International is likely to make another takeover bid for rival Spire Healthcare” with shares trading below its freehold property value.
- Spire rejected a £1.2bn takeover bid from private-hospital operator Mediclinic, which already owns nearly 30% of Spire, in November 2017
- The chart shows the Spire share price movements since May’s highs
- Shares now 138p (at time of writing)
- Will this speculation prove much ado about nothing, or could a deal emerge?
- If speculation intensifies could it drive Spire shares higher?
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Spire Healthcare – An Example
Let’s say you think that Spire is likely to rise further as a result of a takeover offer, towards May’s 258p highs. You decide to buy exposure to £10,000 worth of Spire using a CFD, at the current price of 138p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Spire share price rises by 30%. Your profit would be £3000, 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 Spire 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.