Lendlease’s shares are trading almost 9% up on opening value today as reports grow that the Australian construction giant had become the target of a Japanese takeover bid.
At 4:30pm AEST, Lendlease stock had risen to $13.86, up over a dollar from its previous closing value of $12.74.
Stock surged to almost $14 this morning after The Australian first reported that a Japanese company - suggested as Mitsui - was planning to buy the $7.21 billion construction group, before breaking it up and selling off its parts to various buyers.
A source within Mitsui was quoted by The Australian Financial Review as unaware of any such activity by the Japanese company.
Lendlease issued a response this morning, dismissing the report. “Lendlease confirms it has not received any such approach,” the brief statement read.
Lendlease has suffered several blows to its reputation this year, most recently with the news that it would be facing a class action lawsuit over its struggling engineering business.
Conecta has previously reported rumours of an imminent takeover of the company, with Samsung also being named as a potential candidate for the takeover.
On Monday afternoon, Macquarie Research analysts suggested that Lendlease could be sold for as much as $18 a share; and that a takeover at this time would be “strategically smart.”
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