Fairey shares frenzy cools as bid talks are denied

Fairey has denied being in talks that might lead to an offer for the company or that relate to any of its assets. The statement followed frenzied trading in the electronics company’s shares at the end of last week, with their sharpest ever rise, up 55p to 339p on Thursday. More than 850,000 shares were […]

Fairey has denied being in talks that might lead to an offer for the company or that relate to any of its assets.

The statement followed frenzied trading in the electronics company’s shares at the end of last week, with their sharpest ever rise, up 55p to 339p on Thursday. More than 850,000 shares were traded.

City analysts had speculated the company was being stalked by engineering group Siebe, its own shares down 41p to 962p as a result.

One analyst claimed that Fairey had turned down a firm bid approach, prompting a denial from sources close to the company, after which the shares lost 9p.

The rumour is believed to have been started after a US concern said it was considering bidding for a European company and ‘laid a trail leading to Fairey’s door’, according to an analyst.

Fairey issued a profits warning in May, blaming the Far East crisis for an expected shortfall this year. Its shares are well down on last year’s high of 697p.