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GTL - Agreed bid at 100p a share

December 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • GTL
  • Price:
  • 102p
Shares in GTL, which produces ethanol in the USA, surged after announcing an agreed offer at 100p a share, which values it at £32m. The offer from Siem Industrials, which is co-owned by activist investor Christopher Mills and Norwegian industrialist Kristian Siem, represents a 34% premium to the price the day before the offer. Mills, who previously ran the North Atlantic Smaller Companies fund, clearly has a soft spot for US businesses and we remember well his involvements with Danka, Mid States and Horace Small in the 90s. Now flush with cash following the sale of JO Hambro, we're sure he has spotted an opportunity but a volatile one. That said it's a useful exit. Tipped at 71p in February ‘10, the o ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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