ALU -3.78%: A volatile session for ALU today with the stock down as much as ~14% early due to a report in The Australian suggesting that AutoDesk had walked from their $38.50 takeover offer. The AFR followed that up with an article saying that AutoDesk had tested the waters at $40 a share and that too was rebuffed by ALU. The stock went into a halt for the company to issue an announcement, the crux of it being ‘we know nothing more than what’s been announced’ i.e. the offer had not been pulled. Shares recovered to close only marginally lower. This is a bit of strange situation, if the offer had been pulled they would have needed to say as much today, the fact they didn’t implies not only talks are ongoing but if the AFR is to be believed Autodesk is contemplating a higher price. We hold in the Flagship Growth Portfolio.
MM remain bullish ALU
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