Johannesburg shares of platinum producer Aquarius Platinum surge after the UK newspaper the Daily Mail said there are rumours a major mining house planned to bid 70 pence a share for the company.
Aquarius shares rise 4 percent to 6.08 rand after earlier rising nearly 9 percent. In London its shares were up 1.8 percent at 43.23 pence.
The Daily Mail said Anglo American and BHP had been named as possible bidders, but analysts say this is unlikely.
Anglo, for example, is currently reviewing its South African platinum operations given the wave of labour unrest sweeping the sector and falling profits.
“The share price reacted to the report but it's nonsense. There could be someone else interested in Aquarius but not Anglo or BHP,” said one Johannesburg-based analyst who covers the platinum sector.
The company's share price is down 70 percent this year, underperforming the Johannesburg bourse's platinum index which is down 14 percent over the same period. The company appointed Jean Nel as its new chief executive on Monday, the latest management shakeup in the sector, which is battling labour violence and falling demand. - Reuters