More takeover speculation
Looks like something still might be in the works.
UPDATE 1-Exel at 2-1/2 year high on talk of bid by UPS
Tue Feb 1, 2005 08:40 AM ET
LONDON, Feb 1 (Reuters) - Shares in UK logistics company Exel (EXL.L: Quote, Profile, Research) surged to their best level in more than 2-1/2 years on Tuesday, lifted by talk U.S. rival UPS (UPS.N: Quote, Profile, Research) would bid up to 3 billion pounds ($5.7 billion) for the company, dealers said.
By 1328 GMT shares in Exel, which rose last week on takeover speculation of a bid from either UPS or Deutsche Post (DPWGn.DE: Quote, Profile, Research) , were the biggest blue-chip gainers, rising 8.9 percent to 872 pence, valuing the company at about 2.5 million pounds.
Earlier the stock brushed 900 pence -- its best level since June 2002.
Exel declined to comment on the speculation, while UPS was not immediately available to comment.
Dealers reported speculation that UPS may bid between 950 pence and 1,000 pence a share for Exel.
"A bid at 1,000 pence sounds pretty full to me, 950 pence sounds sensible," said Andrew Beh, analyst at ING Financial Markets.
"The company (Exel) is going to have to make a statement, that will clear it up. I still think it's a takeout target because it's a great company with a global leadership."
Turnover in the stock, at more than 10 million shares, was more than three times its daily average.