First emission, then takeover rumour

Vestas Wind Systems (OMX: VWS) continues to be a stock of choice for those who can benefit from market moving rumours. Today the stock sank to a historic low of 25.56 DKK, accounting to an about 700 million Euro market value, after whispers of a potential dilution following and emission together with sell recommendations escalated into a 10% slide. Then a quick reversal came after Caixin Online wrote citing sources ”close to the situation” that Ming Yang Wind Power Group is interested to acquire Vestas for a sum between 1.5 and 2 million Euros. Caixin also said that an official from industry regulator confirmed those intentions. This pushed Vestas quickly back above 30 DKK, from where it was taken down by back under 28 DKK with renewed comments about the target price cuts and a denial of the buyout rumour.