Q: if there are 3 or 4 different companies, bidding to buy information services and the starting bids are gonna be at $60 a share. Why is the stock languishing at 48.dave
5i Research Answer:
The information on price and bidders is coming from the Globe and Mail, not the company. ISC did say last year it is open to a sale and is running a strategic review. But rumours are cheap in the stock market. Any deal would require several layers of approval, and there would be some time to closing and deal risk. There certainly is potential for a deal, but the company has not indicated a $60 price, and takeover negotiations are never easy.