Rodime stock soars amid acquisition hype

An internet company was tipped last week to launch a reverse takeover of Rodime, the former floppy drive vendor.

An Internet company was tipped last week to launch a reverse takeover of Rodime, the former floppy drive vendor.

The Scottish firm that pioneered the first 3.5in floppy disk drive saw its stock treble in value in one day. Until now, Rodime's price had not changed since April.

Rodime, without any commercial operations at present, released a statement that said: "The directors have noted the movement in the share price of the company but are not aware of any reason which would justify that movement."

Rodime is currently involved in a long court case with Seagate, which is alleged to have illegally used Rodime's drive patents. The case, running for six years, was dismissed by a US court but Rodime won an appeal against the decision. The case still continues in the US District Court.

Rodime had been without any commercial income for the six months ended 31 March, but its losses fell from $977,000 (£611,000) last year to $583,000 due to lower administrative and legal expenses.