View the article online at http://citywire.co.uk/money/article/a593895
PLUS stock exchange sale worries smaller company investors
ICAP has vowed to keep the loss-making PLUS stock exchange open, but the acquisition has raised fears that what was a nursery ground for smaller companies may disappear.
‘There is so much value at the bottom of the market,’ he says. ‘A lot of these companies have cash on their balance sheets and it can be easier for smaller firms to merge with other companies in their sector to reduce costs and get on board their existing institutional shareholders.’
Bellau adds: ‘There will also be a few MBO [management buyout] opportunities if they can find the funding and certainly the potential for M&A activity, if companies do move off the market and have significant number of shareholders it is not a comfortable position to be in.’
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