High prices on junior stock market dampens takeover spirit

Michael Bow
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TAKEOVERS of fast-growing listed firms are down a quarter since last year due to a price hike putting off potential buyers, a report out today reveals.

The readings show just 49 companies listed on the Alternative Investment Market (Aim) were swooped upon in the year ending June 2013, compared to 66 for the same period last year.

The number of takeovers is even lower than the amount made at the height of the recession in 2008/09, according to the study from accountancy firm UHY Hacker Young.

“The share prices of many Aim companies have rallied since the depths of the recession when they were trading at a discount to their net values, and so were attractive targets for takeovers,” partner Laurence Sacker said.