The huge share volumes traded before Metropolis released its 40c offer to the market has alerted the Financial Services Board (FSB) to possible shenanigans within the markets, but Metropolis denies any leaked information.
On Monday, Metropolis announced it was nearing completion of negotiations with shareholders Datatec and Primedia for a 40c per share offer. The SENS alert was published after the bell that afternoon.
During the day, 1.145 million shares changed hands at 9c and 10c, worth R105 000, an inordinate amount of interest from a counter which previously had not evoked much investor attention.
The Metropolis share skyrocketed Tuesday morning, climbing from 10c to 35c in a matter of minutes, a gain of 250% as the markets reacted favourably to the offer.
In a brief announcement today, the company said: "The Metropolis board confirms that no information relating to the announcement was released prior to the SENS release and the board has indicated that it will actively support any investigation by the FSB."
The investigation is not good news for Datatec, whose chairman Jens Montanana and financial director Robert Rindel recently paid a R1 million fine to the Insider Trading Directorate after allegedly releasing sensitive information to an analyst which may have resulted in a move in the company`s share price.
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Metropolis share skyrockets on news of possible offer
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