Xing Gains Most in 3 Years on Burda: Frankfurt Mover
(Corrects period of gain in first paragraph.)
Xing AG (O1BC), the German professional networking provider, had the biggest increase in three years in Frankfurt trading after WirtschaftsWoche reported that publisher Hubert Burda holds options that would take his stake to more than 30 percent.
Xing gained 15 percent to 56.52 euros at the close, marking the biggest increase since March 2009.
“There’s a certain level of takeover fantasy at play given Burda’s track record of buying into Internet and social media companies,” Marcus Silbe, an analyst for Close Brothers Seydler Research AG in Frankfurt, said by phone. “If he crosses the 30 percent threshold then he’ll have to make a mandatory takeover offer.”
Silbe raised his rating on Xing to “Buy” from “Hold” today, with a 60 euro target price.
Hubert Burda Media GmbH spokesman Nikolaus von der Decken declined to comment on the takeover speculation.
Xing disclosed the put options in a March 14 statement to the stock exchange.
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