The failure of Scoot.com to make a statement when the stock market opened led many investors to believe the earlier reports that Vivendi, which already holds 22.4% of the shares in Scoot.com, was about to acquire the company for £1.7 billion. The price, being almost three times the company’s value, caused a buying spree among investors, pushing the share price up by 52%.
In its 4pm statement, Scoot.com said, “there has been no suggestion that Vivendi wishes to make an offer for the whole of the issued share capital.”
Rules for companies listed on the stock market mean that if Vivendi were to increase its holding in Scoot.com to more that 30%, it would be forced to make a bid for the entire company. For this reason, Scoot.com could not say that Vivendi was interested in increasing its stake without also denying that takeover talks had taken place. Scoot.com’s investment banker adviser and the Takeover Panel said the statement was delayed because of Vivendi’s existing stake.