During early trading today, telecommunications company Uniti rocketed as takeover rumours spread throughout the market. The company was quick to respond and imposed a pause in trading at 10:14 AM. But in those 14 minutes, the Uniti share price had already risen 17% to $3.69.
These rumours have been circulating via many avenues, one of whom being The Australian newspaper which claimed that Uniti were in exclusive talks regarding a potential sale of the business with an offer price of somewhere between 4-5 dollars a share. For reference, the 52-week high of the UWL share price is $4.69.
Giving props to the board of directors, as of 3:30PM this afternoon, the board of directors promptly responded to the media speculation and provided clarity on the rumours.
The company confirmed that they are indeed in exclusive talks with HRL Morrison & Co. They have confirmed however, that these talks are so far “non-binding, preliminary, highly conditional and uncertain as to an outcome”.
The company also confirmed that this indicative proposal was for a price of $4.50 per share, which is in line with the media speculation. The company also ensured shareholders that they will be kept up to date with any developments going forward.
The market responded well to the release of these details, with the Uniti share price ending the day at $4.01, representing an increase of almost 30% for the day.