Cognos has long since been considered a takeover candidate in the highly-consolidatory business intelligence software industry and it finally happened today as IBM announced its intentions to purchase the company in an all-cash deal.
FP Trading Desk notes that Cognos showed deviant trading behaviour in days ahead of IBM takeover:
Cognos shows deviant trading behaviour in days ahead of IBM takeover
Ottawa-based software maker Cognos Inc. (CSN/TSX, COGN/NASD) said on Monday it agreed to be purchased by IBM (IBM/NYSE) in an all-cash deal of US$58 per share. But in the two days before the US$5-billion deal was announced, Cognos shares rose 9.5%. The stock closed at $45.69 in Toronto trading Wednesday, before rising to end the week at $50.02.
Measuredmarkets' analysis shows deviant behaviour trading in Cognos shares on Nov. 8 and 9, despite any major news from the company. However, it has long been considered a takeover candidate.
Measuredmarkets Inc.'s Early Warning Service alerts investors to when a stock’s trading pattern changes significantly from its normal behaviour. The trading analysis covers nine time periods, examining closing price, total volume and the number of individual trades. It surveys the NYSE, NASDAQ (National Market), AMEX and TSX, and is available at measuredmarkets.com
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