Was surprised to see SP go up to 385p today when the agreed offer was reported at 377p. Any thoughts on what market forces create this apparent discrepancy?
i have the same question.
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YorkshireBorn
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gus 1065
It’s not uncommon for a share price to go above an existing bid level. It’s usually a function of the market taking a view that an existing bid might be topped by another offer. Such speculation might be on the dynamics of the bid itself (is it a low ball offer, is there a low level of acceptances of the offer in place, is there another obvious bidder in the background etc.?), sometimes it’s the result of a leak from one of the many parties involved in the background to another bidder (lawyers, bankers, accounted, inst. investors etc., being sounded out) tipping the market off. While the latter shouldn’t happen (from a legal point of view) it does and very little gets done about it but that’s how it goes. Price action usually tells the PI more than is readily available public information in the public domain.
Gus.
