Bubs denies takeover rumours amid speculation on HotCopper
Health & Biotech
Health & Biotech
Baby formula maker Bubs Australia says it isn’t being bought, despite what users on the HotCopper forum might think.
Bubs (ASX:BUB) issued an announcement shortly after the close of market on Tuesday to quash rumours that it was the target of a takeover bid.
“Bubs Australia is aware of speculation on an investor discussion forum regarding a potential takeover offer for Bubs Australia,” it said.
“Bubs Australia confirms that it has not received any takeover offer approach.”
The company’s shares had seen an unusually high amount of trading and ended the day at 91c, up about 14 per cent.
Bubs didn’t mention the source of the rumour by name, but Stockhead suspects it may have had something to do with a four-word question that was posted on the HotCopper forum: “Is A2M buying BUBs?”
A2M is the A2 Milk Company which, like Bubs, sells infant formula to China — but is about 15 times bigger by market cap.
Don’t believe the hype
Anonymous comments on the popular HotCopper forum are a thorn in the side of at least one listed company on most days of the week.
One former chief executive of an ASX-listed company told Stockhead that while there were a few users who knew their stuff, information on the forum generally shouldn’t be taken as gospel.
“HotCopper is a forum where a lot of gossip and a lot of rumours sort of sprout and most of the time they’re inaccurate,” said the executive, who declined to be named.
“There are certain different types of HotCopper posters. There are the people who are there just to spruik companies for their own benefit — so they start making stuff up — and then there are others that are really well-informed and do a lot of research.”
Or, as forum user Britneek put it in one of Tuesday’s Bubs threads: “In the wild west of the ASX, one can never be sure.”