Gandalf Shares Soar After Buyout Rumour

The company has insisted that recent speculation about a possible takeover is unfounded

Gandalf Technologies? share price catapulted last week as speculation grew on North American stock exchanges that the company was about to be taken over.

The share price rise came at the same time as Gandalf posted a loss of $18.8 million for its Q4, ended 31 March, bringing its total loss for the year to $46.3 million. Turnover for the quarter was $16 million.

The takeover speculation pushed Gandalf?s share price up on Nasdaq from $1.56 to $2.56, with more than 10 amillion shares changing hands. On the Toronto stock exchange, stock jumped from $1.40 per share to $3.48, with more than 2.9 million shares traded.

Marc Gee, Gandalf international marketing director, said: ?The rocketing prices were based on no material facts whatsoever. It was pure speculation. But one of our possible routes is to merge or form a strategic alliance with a big boy to give us the extra muscle we need to accelerate product development and compete with the likes of Cisco.?

The company?s losses were attributed to $8.4 million restucturing costs incurred when Gandalf shifted to an indirect sales model last year.

?The results have been disappointing,? said Gee, ?but we can see light at the end of the tunnel. Once we get this quarter out of the way and we have a manageable cost base in six months? time, you?ll see a very different company.?