Bogus Takeover Bid on IDTI
Shares of Growth Stock Strategist holding Integrated Device Technology (NSDQ: IDTI) spiked as much as 24% yesterday on almost 17 million shares, almost six times its average volume. A filing was made on the SEC website detailing a $32 acquisition bid by a group of Chinese investors.
The company put out a press release noting that “we have not had any communication whatsoever with any of these parties.” It said it is “unaware of any other information that would support a determination that the group’s proposal represents a credible bona fide offer to purchase the company.”
I suspect this is a bogus take out bid, similar to the one initiated on Avon last year.
Stock Talk
Jim Pearce
If it does turn out to be bogus, it will be interesting to see if market regulators here and/or in China will try to do anything about any leveraged transactions that were consummated during the price spike. Probably not much they can do, but presumably the intent in circulating the rumor was to drive the price of the stock up so the people starting the rumor could make some quick money in call options.
Linda McDonough
Yes Jim. In the case of the fake Avon bid, the SEC eventually charged a Bulgarian man with filing the false bids.
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