NED - Takeover talks, but why no SENS?

[ABuzz]

As per the following news report by SABC News, Old Mutual are in takeover talks about Nedbank, so how come we don't have a SENS about it? British bank sets eyes on Nedbank July 19, 2007, 06:30 Nedbank, one of South Africa's big four banks, could be the target of Standard Chartered Bank, a British bank. It is reported in the financial press this morning that Standard Chartered, which operates in 14 other African countries, sees South Africa as a potential core of its operations on the continent. According to the reports, discussions have been taking place between Standard Chartered and Old Mutual, Nedbank's controlling shareholder. Analysts say Nedbank is a perfect take over target because its share price offers good value. Should the deal go ahead, Nedbank will become the second South African bank to come under British control. Three years ago, Barclays Bank took control of Absa, South Africa's largest retail bank. The cost of the take over was just over R30 billion.

[SimonPB]

no sens, maybe because it's not true?

[ABuzz]

OK, I know not all News reporting is truthful, but this is a pretty bold statement to make if there's no substance to it. My theory, where there's smoke, there's usually fire.

[SimonPB]

there is often take over talk out of London that is completely not true. In fact some London papers seems to specialise in it.

[ABuzz]

Thanks Simon - remind me of your theory again... "Buy on rumour...?"

[#6]

yeah, i heard it on the news this morning to.

[CHATTYCHAT]

Executive Tom Boardman pocketed nicely during May 2007 and the last share deals were on June 4. I suppose a lock-in period could have kicked in at the time?

[ABuzz]

Simon - looks like I am not the only one to think this rumour is true, opened up very strongly.

[SimonPB]

sure (note all banks well up, check R139 high on ASA!), but that doesn't make it true - nor does that matter. Markets respond to rumours, regardless of the truth in them (remember GFI earlier this year?).

[#10]

It's a bit like swimmin. A dude screams 'shark' you don't ponder the probabilities - you churn for the shore and leave the thinkin for later. A rumour is enuf to drive a price up (or down), but could jest as quickly move the other way again once the rumour goes up in smoke. It's good if you in, but I wouldna chase it.

[CHATTYCHAT]

Hope this turns into a nice fire - need the hype to get met out of the cr@p

[JohnnyCash]

Looks like a nice one to try out Chartist's 1-2-3-move......