Does this present a Takeover opportunity for you?

Will anything come of this speculation? Could Spire shares benefit?

• Investec says “Mediclinic International is likely to make another takeover bid for rival Spire Healthcare” with shares trading below its freehold property value.
• Spire rejected a £1.2bn takeover bid from private-hospital operator Mediclinic, which already owns nearly 30% of Spire, in November 2017
• The chart shows the Spire share price movements since May’s highs
• Shares now 138p  (at time of writing)
• Will this speculation prove much ado about nothing, or could a deal emerge?
• If speculation intensifies could it drive Spire shares higher?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Spire Healthcare – An Example

Let’s say you think that Spire is likely to rise further as a result of a takeover offer, towards May’s 258p highs. You decide to buy exposure to £10,000 worth of Spire using a CFD, at the current price of 138p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Spire share price rises by 30%. Your profit would be £3000, 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 Spire 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.