Shares in package machinery maker BWI soared last week after the stock market tiddler admitted that it had received ‘several approaches’, including one from management, to bid for the company.
The approaches, believed to have been made only recently, were revealed after BWI shares started showing gains on the stock market.
Shares leaped 24p to 71.5p on the news, but by Friday had eased slightly to 67.5p, giving the firm a £40m market capitalisation.
Analysts said they believed a bid had been likely for some time. The shares are trading on a rating of just 3.5 times forecast earnings.
‘There hasn’t been any interest because it’s just off the radar screen as far as institutional investors are concerned,’ one said.
BWI has previously been linked to packaging machinery makers Molins and GEI, although neither is thought to be behind any of the approaches this time.
BWI’s independent directors and joint stockbroker Albert E Sharp said the approaches were ‘under consideration’.