French takes to the hills after piquing trade's interest

Cobalt trader SFP Metals’ announcement that it is working on acquiring an undervalued asset of some sort has given alloys and minor metals traders plenty to think about.

Companies that target such assets are usually reluctant to reveal it for fear that it will drive up the price or alert their competitors, they said.

Most traders believe there are two possibilities: that SFP will bid for Wogen, which is in the throes of a management buyout, or that it will buy a firm that nobody has yet heard of.

“In a supine position Wogen may look pretty attractive to SFP and its shareholders,” one cobalt trader said.

But others dismissed the possibility, saying the Wogen traders that own much of the stock in the company would be unlikely to want to cede control. Wogen traders are likely to be keeping a close eye on the register of shareholders anyway, market sources added.

It was not possible to quiz SFP director Nick French about what hidden gem he might have his eyes on since he was walking in the hills of France last week.

The director of another trading company said: “It’s strange to go on holiday if you’re in the middle of a big acquisition.”

“You know what they said to me? ‘Buy the rumours, sell the fact’,” a third trader was told when he questioned SFP about their plans earlier.

As soon as Hotline can disentangle the two, readers will hear of it.