The emitch move to acquire its parent, Mitchell & Partners, is a deal that appears to have been anticipated very well by the market.
Emitch shares have risen 25% in the past month, from around $1.21 on November 20 to $1.55 on Friday, when a trading halt was called. When news broke of the deal today they soared to $1.75c an intra day high, before falling back to around $1.46 after midday.
The price started rising after a bullish AGM on November 23. The shares rose a touch in the wake of the meeting to $1.25 or so, edged up to around $1.28 in the first week of December before climbing steadily from that level from about December 5.
That was a sure sign that the smart punters had priced the deal into emitch’s share price and that no rival bids were expected.
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And according to the list of company announcements there hadn’t been a query from the sleepy lot at the ASX, despite that sharp price movement over that time: which, considering the exchange has been querying quite a few companies recently over sharp price rises, is a bit strange.