Shares in Purplebricks shot up yesterday amid speculation that Axel Springer was considering buying it.
On investors’ website ADVFN, one person posted: “Axel Springer interested in Purplebricks takeover – Dealreporter – explains the spike.”
The shares at one stage shot up almost 20% to 148p – like a purple rat up a purple drainpipe, as one of our posters put it – but closed at 132p, a rise of almost 7% during the day.
Dealreporter, which covers mergers and acquisitions, and capital markets, is behind a paywall but it did not mention Purplebricks or Axel Springer yesterday on its Twitter account.
Axel Springer has a 26.57% stake in Purplebricks, the latter has confirmed in its annual report, and is the biggest shareholder by some margin.
Purplebricks’ annual report stressed that it will now concentrate on its profitable flagship UK operation and on Canada, after pulling out of the US and Australia markets where it has lost millions.