Shares in Satellite navigation specialist Trafficmaster raced 14 per cent higher to 45p on Wednesday after it revealed it is in takeover talks.
Industry experts feel that Trafficmaster’s mix of corporate fleet management and consumer Satnav operations make it difficult to predict the identity of the predator. One City insider, who knows the company well, admitted that this has come as a complete bolt out of the blue.
The shares' relatively modest jump on the surprise news implies that either the market has little faith that a deal will be struck or, it believes that the takeout price will be somewhere in the region of £70m. This would imply a PE ratio of below 10. Just last month we flagged the attractions of the shares () after the company reported a 14 per cent hike in 2009 pre-tax profits.
