Countrywide shares shoot up on speculation that a buyer could be lurking in the wings

Countrywide shares shot up by over 20% yesterday after newspaper speculation that a mystery buyer could be looking to put in a bid for the company.

However, because the share price was so low in the first place, the 20% rise put on exactly 1p.

The shares rose yesterday from about 4.8p to as high as 6.4p, but ended the day at 5.8p.

The Daily Mail opened the speculation on Sunday without dropping any clues as to the identity of a possible buyer, but yesterday the London Evening Standard suggested that it could be US funds “circling” to take Countrywide private.

The paper also suggested that founder Harry Hill should be reinstated in a senior role and quoted Numis analyst Chris Millington as saying: “It feels like the rot has set in at Countrywide.”

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3 Comments

  1. whatdoiknow58

    Not too sure where this type of takeover rumour starts but clearly someone said something to someone who knew somebody who knew something. All I know from having worked for CWD for over twenty years before I left last year was how quickly a once great and market leading business could be so utterly trashed within the space of three years by poor decisions being taken even worse recruitment at board level and a disastrous round of acquisitions with the consequence that the company is now on its knees and the vultures circling to pick at the carcass. I still keep in touch with the friends I left behind and believe me they are praying that the takeover rumours are true because moral is currently at rock bottom as Branch closures are still happening around them. I am not bitter at all just really sad at the slow death of what was once such a fine company to work for and be proud to do so.

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  2. ExCountrywideDinosaurs

    5.8p……………. and to think some agency business are still run in the same fashion as the Countrywide model………. 

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  3. chris

    …. and there we are, back to square one where the price is under 5p. No doubt those that created the thunder struck lightning by buying in and selling out making 15-20%, as I see there were 17M trades on Monday where there were some large buyers/sellers compared with 3M today.

    Those that have been holding on to their shares in hope of a turnaround not so lucky as they have yet to see them back up to even 10p, which would still be pitiful.

    Oh dear, will it all end up in tears (if not already) or will there be a saviour appear out of the clouds as per last time round – I would think many competing estate agents might hope so.

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