Watch Anite (AIE)...


Experienced member
Time to start a thread on AIE which shot up +15.5 (10.3%) to 166.5 last friday when announced that it is in “very preliminary” talks with a potential merger partner...this triggered rumours in the City suggesting that it could be up for sale...

But after such a rise, does that not mean that there is a limit to further upside ie. already missed the boat?

Also, if these preliminary talks come to nothing, then the downside risk is great. Or am I being too overcautious?

Hehe...typical British! born pessimists :)

But you'r right in both suggestions...I haven't completed the thread's doing ok on it own:

"...Anite has been producing results and making its own acquisition deals that defy the current state of depression in the IT services sector. In January, the group’s interim results showed that first-half pre-tax profits grew 42% to £8.5m while revenues rose 32% to £69m..."

"...Forecasts for the current year suggest that Anite will earn £18.3m. Against its current market cap of £446m, the company is not cheap, but neither does it look overpriced...."

"...With brokerages unsurprised by the move, the talk suggested that Anite's business in the UK and Germany, rather than its specific sectoral trading in the public sector and in telecoms testing equipment, could be the key prize..."

And a possible bid is expected in the vicinity of 220-250...

Chart suggesting break through, a close above 160 on monday turning this strongest resistance into support makes another jump to 195 in the short run possible,,

Merger spec

Information technology company Anite confirmed it is in preliminary merger talks, forcing stock to jump 9% to 166.5p yesterday. Following speculation of a possible deal, it has climbed steadily since midweek, reports the Financial Times. Possible merger partners include UK’s Logica, Finish company Tieto and the French GFI Informatique. The paper comments that if Anite disposed of its IT recruitment division, it would offer even better prospects should merger plans ever take off.