NOL denies imminent acquisition as stock price falls
Singapore-based Neptune Orient Lines has issued a public statement to the stock market to try to calm rumors it is planning an acquisition.
“The company is aware that rumors have been circulating in the market that the company is intending to proceed with a substantial acquisition in the near future,” NOL said Thursday. “It is not currently in discussion with any third party in respect of any such acquisition.”
However, NOL reiterated its previous position that it continually assesses opportunities for mergers, acquisitions, joint ventures and other alliances.
In mid-February, NOL’s stock price dropped as much as 7 percent on market talk it was planning to make an acquisition, prompting the company to issue another denial of such a plan at the time.
NOL has been linked to P&O Nedlloyd in what were believed to be merger or takeover discussions, although neither company confirmed this.
NOL’s stock price, which recently fell on the Singapore stock exchange, rose 2 percent Thursday, when the company issued its denial statement, and decreased 0.5 percent today, to S$1.97. Since reaching a recent high of S$2.39 on Jan. 26, NOL’s stock price has now decreased 18 percent, although the stock is still priced at twice its level of a year ago.