What Happened to Ten Network’s Share Price?
Shares in free-to-air television network Ten Network Holdings Ltd [ASX:TEN] rocketed today, gaining as much as 21.7% intraday and closing up 17.4%. In the past three weeks, Ten shares have increased in value by more than 45%.
Why Did This Happen to TEN Shares?
Investors are jumping on speculation that pay TV operator Foxtel and US cable giant Discovery Communications Inc [NASDAQ:DISCA] are considering a joint bid to take Ten private.
Ten has been subject to takeover and merger speculation all year. But yesterday, the broadcaster confirmed it has hired Citigroup Inc [NYSE:C] to help assess ‘a range of potential strategic options’.
What Now for Ten Network Holdings Ltd?
It’s a risky strategy to buy a stock purely on takeover rumours. These stories can often prove to be all smoke and no fire. But if the suitors get serious, this stock should rise significantly from its current depressed levels.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
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The post Why the Ten Network Holdings Ltd Share Price Took Off Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
