SCMP Shares Tank 10% on Takeover Talks
Shares of SCMP Group, the publisher of the South China Morning Post, fell as much as 10 percent in resumed trade on Tuesday after it said it was in talks about the possible acquisition of a group of media companies.
The company said in a filing after the market closed on Monday that it was in negotiations with third parties, though it did not identify the targets. The disclosure came almost four hours after its shares surged as much as 31 percent before a trading halt.
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The stock closed on Monday up 23 percent at HK$2.15, its highest close in four years, pushing its market capitalisation up to $433 million.
The company said in its stock exchange statement that it was unaware of any reason for the stock price jump.