I run a scan that looks for anomalies in volume and a few months ago it threw up an interesting candidate – AGL. The scan is set up in such a way as to generally ignore these larger cap stocks – they very rarely show up as potential trades. You can see the large blue volume spike in the chart below.
I dont trade stocks such as AGL so merely passed on the trade. Intriguingly someone sent me this piece from today’s Sydney Morning Herald.
Tech billionaire Mike Cannon-Brookes has teamed up with Canadian fund manager Brookfield to launch a takeover bid for Australian energy giant AGL and set stronger emissions-reduction targets that would force earlier closures of its remaining coal-fired power stations.
The joint offer to buy the nation’s largest and oldest energy utility, received on Saturday, proposes to acquire the entire company including its retail division supplying 4.5 million customer accounts and power generation fleet spanning coal, gas and renewable energy assets.
I am not one for conspiracy theories since they are simply designed to make stupid people feel smart but I have been around the industry long enough to know that deals such as these are not just suddenly thrown together they are months in the making and that corporate advisory offices leak like sieves. It doesn’t matter how tight you think your not disclosures are someone who is sufficiently motivated by greed will simply not be able to help themselves.