LibertyOne was forced to issue a statement to the Australian Stock Exchange (ASX) this week after takeover speculation caused its shares to rise sharply.
On Monday, shares hit a record high of $1.60 and closed at $1.59, up 25c from trading two days earlier.
The share spike is being attributed to speculation that the company may be acquired by Asian Internet company China.com.
In the statement prepared for the ASX, Peter Hanson, the company’s secretary denied there was any matter of importance to be announced to share holders.
The company said it can only speculate as to the reason for the recent trading in its securities but concluded that the release of its financial results on September 13, and recent acquisitions of four significant Asia Pacific businesses including Zivo Interactive and Clearview Communications were the reason.
LibertyOne said “it is part of a rapidly growing industry that is subject to constant speculation and rumour about joint ventures, licensing deals, mergers and takeovers.”
It added that since its listing last December, it had been subject to a steady stream of takeover rumours.
“LibertyOne is continually discussing strategic relationships with many of the major players in the Internet space,” Hanson said.
None of these have yet progressed to the point where a announcement to the market was necessary, according to the company.
However, share prices were still being affected by the rumours yesterday, with shares reaching a high of $1.62 before closing at $1.50.