The share price of troubled technology company Usko fell more than 10% on Thursday amid further rumours of an acquisition by Allied Technologies (Altech).
The Usko share lost 12c or 10.6% to 101c as 3.3 million shares changed hands.
The market has been abuzz with talk of a possible deal between Altech and Usko for some time, particularly as analysts say Altech is sitting on a large cash pile and MD Craig Venter is known to have been looking for an IT acquisition.
Altech called off a merger deal with IT company Brainware earlier this year after completing a due diligence.
Altech`s share dropped 20c or 1.5% to R13.30 on Thursday as only 12 400 shares traded. An analyst says these are abnormally low volumes. Daily volumes averaged about 2 million shares over the past week.
Neither Venter nor Altech`s directors were available for comment as they were said to be in a meeting, but Venter has in the past denied speculation that the company will negotiate with Usko.
An Usko spokesman would not comment on Thursday, saying the company is under cautionary. Usko directors were also unavailable.
Usko has been the subject of much market attention in the past few months. Brait, which holds a small stake in the company, has also been pegged as a possible buyer, although Paul Jessiman, CEO of the Braitec IT investment fund, has said Braitec is not acquiring. He did not rule out the possibility that another Brait division might be.
Usko`s share has plunged from a close of 641c and a high of 675c last year. The Financial Services Board also recently called off a probe into possible insider trading owing to a lack of evidence.
However, the company has claimed that its share price is being manipulated and has asked the JSE to investigate, although marketing manager Tom Pegrume said last month the company has not heard from the JSE on the matter.
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