Australian IT services company Appen Ltd’s share price boomed by almost 30 per cent before falling apart after a rival takeover bid was abruptly withdrawn, according to Sky News Business Editor Ross Greenwood.
Canadian data analytics software maker Telus International made and then abruptly withdrew a $1.2 billion buyout approach for Australian rival Appen Ltd, according to Reuters.
On Thursday, trading in Appen’s shares were halted after they surged more than 29 per cent to $8.27 as investors prepared for an eventual buyout.
Appen is part of the WAAAX stocks on the ASX – made up of WiseTech Global Ltd, Afterpay Ltd, Appen Ltd, Altium Limited, and Xero Limited.
“It’s share prices boomed and now has fallen apart,” Mr Greenwood said.
“Now it appears as though the Canadian company has pulled out of the deal, literally only hours after it was announced … very strange.”