JSE-listed ConvergeNet, which was recently bought out in a hostile move, closed 12.12% higher yesterday, after news that the company was in talks.
The group, which made a loss for the first half of the year after contracts were delayed, said it was in talks that could affect its share price if they are successfully concluded.
It says stock owners should be cautious when trading in shares. The news sent its shares 12.12% higher to close at 37c, compared with Monday's 33c close, a gain on the 26c a consortium offered to shareholders when the takeover bid was made.
In February, a consortium led by Trinity Asset Management bought a controlling stake in ConvergeNet, and said it aimed to oust several directors, including CEO Pieter Bouwer.
The purchase of the majority stake led to minority shareholders being offered 26c a share to sell their holdings. In total, the consortium now has control over 60% of the vote.
ConvergeNet issued a cautionary at the end of May, but then withdrew it on 21 June, after negotiations terminated.
In the six months to February, revenue fell from R496.6 million year-on-year, to R416.5 million. The group reported a total loss of R6.3 million, compared with a R17.7 million gain in the first half of the prior year.
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