The Daily Mail has reported that a combination of takeover rumours and the expectation that results due on Wednesday will be better than expected, led to the shares accelerating.
‘Green lights flashed for Inchcape as shares of the UK-based car dealer, which trades in 26 countries, accelerated 1.25p to 25.5p on a four-star combination of vague takeover talk and expectations that Wednesday’s interim results will please,’ reported the paper.
‘An early jackanory doing the rounds suggested that a cash-rich private equity group was lining up a bid, believing the longer-term potential of the group is substantial once normalised market conditions in the car market return.’
Inchcape’s shares fell to an all-time low of 5.8p earlier this year, but have since recovered to more than 25p.
Inchcape has said that second quarter profits were expected to be significantly ahead of the £20m reported in the first quarter.