Does this present a Takeover opportunity for you?

Will this deal go wrong, or will Jardine Lloyd shares rise even further?

• Jardine Lloyd recommends 1915p offer (34% premium) from Marsh & McLennan
• The chart shows Jardine Lloyd Thompson share price movements over the past year
• The shares jumped 32% to trade fresh record highs this morning (at time of writing)
• Will the deal be abandoned, will the deal fall through or will another even higher offer emerge to acquire the company?

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Trading Jardine Lloyd – An Example

Let’s say you think that Jardine Lloyd is likely to rise further as a result of a takeover offer, towards the 1915p offer price, perhaps even above. You decide to buy exposure to £10,000 worth of Jardine Lloyd using a CFD, at the current price of 1870p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Jardine Lloyd Thompson share price rises by at least 1.3%. Your profit would be at least £130, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sentiment towards the deal sours and Jardine Lloyd shares fall 5% and hit your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.