Cardpoint rises on bid talk

Cardpoint rises on bid talk

Shares in fee-charging ATM operator Cardpoint jumped in morning trading on news that the company has received a preliminary bid approach.

Cardpoint shares rose 6.25 pence to 108.75 pence after the firm said initial discussions are currently taking place to assess the seriousness of the approach.

The identity of the suitor has not been disclosed. But according to press reports London-based hedge fund Cycladic has bought large amounts of Cardpoint stock in recent days amid growing rumours that US financial services firm GE Capital is considering making a 150 pence-per-share bid for the ATM operator.

In a statement responding to the recent movement in its share price, the vendor says the discussions are at a very early stage and there is no certainty that an offer would be made.

Cardpoint currently has 5500 cash machines and 3000 mobile phone top-up terminals in the UK, and 800 ATMs installed across the Europe, mainly in Germany and The Netherlands. Last year the firm bought out UK rival Moneybox for £87.3 million in cash.

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