Monstermob confirms takeover bid
Tumbling shares bounce on approach
Monstermob Group's shares have been boosted by confirmation it has received a takeover approach.
The UK mobile content provider has issued three profits warnings this year, and has seen its stock tumble from 446.5 pence in January to just 41.5 pence on Friday. At time of writing, shares were changing hands for just over 67 pence, up more than 20 per cent on closing price yesterday, valuing the outfit at around £41m.
According to the Financial Times, the bid was rumoured to come from former chief executive Martin Higginson, who was replaced by managing director Niccolo de Masi in June. The paper reports that the source is another party, however.
A statement from the firm said: "The board wished to stress that discussions are at a preliminary stage. The proposals being considered are subject to a number of material preconditions and there is no certainty that any offer will be made for the company."
Monstermob has suffered from falling demand and a regulatory backlash at its aggressive marketing tactics, which have included charging a subscription fee when many punters thought they were making a one-off payment. ®