Investec shares rise amid takeover speculation

Investec shares jumped in early Wednesday trading after the South African financial giant became subject to takeover speculation.

Shares rose as much as 4.6 per cent before settling at 1.4 per cent, trading at 669.5p, following reports from M&A blog site Betaville that the bank may have attracted takeover interest, with it citing “people following the situation”.

According to reports in Betaville, the identity of the potential suitor is unclear.

A spokeswoman for Investec said: “We do not comment on market speculation or rumour.”

Investec’s shares are up 18.2 per cent since January, and 27.7 per cent over the past 12 months, after it upgraded its earnings guidance, reported growth in funds under management and expanded its private banking capabilities.

FTSE 100 rumours

The rumours surrounding a takeover also come as Investec flirts with promotion to the FTSE 100 in the latest reshuffle after market close tonight.

The move into the leading index would mark the end of its near 15 year tenure in the FTSE 250, after falling from the blue-chip index in December 2011.

The changes will be confirmed by FTSE Russell, a subsidiary of the London Stock Exchange Group, with the changes based on the closing prices from Tuesday night.

In the reshuffle, housebuilder Berkeley Group is reportedly poised to be relegated into the FTSE 250, with property search platform Rightmove and packaging group Mondi also anticipated to fall. 

The changes will come into effect as of June 22.