Investors and advisors who use media reports as part of their screening process to identify and evaluate Australian potential takeover targets should filter for articles that signal a process is underway and be wary of stories based on valuation driven signals of potential future activity.
This assessment is based on a Flash analysis of the accuracy of ASX-listed takeover ‘rumour’ stories written in 2018 by either of Australia’s dominant business gossip columns: The Australian Financial Review’s Street Talk (AFR) and The Australian’s Dataroom.
An application of the findings from our research to recent coverage by these newspapers suggests that real estate company Peet Limited and automotive repair company AMA Group are more worthy of evaluation than other recently touted takeover targets BlueScope Steel and United Malt Group.
To view the full story, click here.
If you are not subscribed to Dealreporter, please contact Hamish Miers for a free trial in order to access the full article.
By Will Drake and Ed Vinales