Trafficmaster has agreed a 47p per share takeover from San Francisco-based investment firm Vector Capital, valuing the satellite navigation specialist at £73.3m.
It is not terribly surprising that Trafficmaster has caught the eye of private buyers. A rapidly growing business it may be, but it has long been dogged by old market perceptions which have kept the handbrake on the share price. This bid values the company at just 10 times 2010 EPS, far from generous, albeit well up from our original bargain portfolio tip ().
But this is no done deal. So far shareholders representing just 28 per cent of the stock have agreed to sell, and they could switch to a rival bid priced at least 10 per cent higher than this.
When: 6/02/09
Price: 16p
