Shares in Misys have moved up amid City speculation of an impending bid for the UK banking software and treasury systems house.
Misys' stock continues to defy gravity on Wednesday morning, moving up to 348.4 pence in UK trading, even as the FTSE100 waned. The uplift continues a trend that saw market speculators push up the stock by almost 10% to 343.5 pence in otherwise thin trading on Tuesday.
A perennial subject of takeover speculation, Misys continues to trade at a discount to its sector peers, fuelling City gossip that a bidder may be waiting in the wings.
A research note by Credit Suisse helped fan the flames, suggesting that Misys chief Mike Lawrie and 20% shareholder ValueAct would be ready to cash in. "We believe that Misys' banking and treasury capital markets businesses could make attractive acquisition targets," the note stated.
Finextra verdict We believe a break-up or partial sell-off of Misys is inevitable, but much will depend on the performance of the vendor's revamped BankFusion core banking package. While the treasury and capital markets business continues to perform well, Lawrie and his backers are more likely to wait until they can demonstrate clear market interest in the BankFusion strategy before hanging the 'for sale' signs in the shop window. That doesn't preclude an unsolicited approach from a rival software house, of course, but we suspect prospective suitors are busy putting their own houses in order while financial services sales remain in the doldrums.