When a Takeover Bid is a Sell Signal

The Week: Takeover bids can often be a time for euphoria, but that doesn't seem to be the case for NMC Health, says Morningstar columnist Rodney Hobson

Rodney Hobson 14 February, 2020 | 9:20AM

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There are two types of takeover bid. One is a joyous event with potential great rewards for shareholders; the other is a miserable dirge that will bring little comfort.

Where a successful company attracts attention because it is such a great prospect, the board can dig in for a higher offer and perhaps spark a bidding war. Once the ball is rolling, bids are likely to appear.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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