I really couldn't believe it earlier this year when two of my stocks, Xansa and IXE, got taken out at massive premia to my buy-in price, making me a fat profit.
Groupe Steria bought Xansa at a premium of 70% to the previous day's closing price; Equinix, originally offering a 50% premium to the share price, increased its offer further (to 67% more than the average share price in the three months prior to the offer).
It looks as if the level of enthusiasm displayed in the middle of the year has disappeared judging from recent bids. Both Red Squared and Telent look to have fallen to bids that offer less than a 20% premium.
So once again it does look as if the cold water thrown on the markets by the credit crunch has affected equity valuations. Anyone still believing that bids will rid them of their poorer performers... get out now!
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