Gain’s share price is down 20% since deciding to go it alone.
Gain Capital (Forex.com) continues to see its share price plummet. Since Gain announced they would be buying GFT and rejected the takeover bid from FXCM, shareholders of Gain have seen their share price slide by 20%, back basically to where they sat when FXCM first made its offer to buy Gain in early April. Yesterday (Wednesday) alone, Gain shares dropped more than 8%.
GCAP (NYSE) 5-day price chart. Source: Google Finance.
And this, of course, after Gain pre-released what were much-improved Q1 results as part of its argument to shareholders that rejecting the FXCM takeover was the right thing to do. It seems, at least in the near term, that Gain’s shareholders disagree and would have much preferred the premium FXCM was offering, as well as the combination with FXCM, over Gain’s takeover of GFT and its decision to build shareholder value by going it alone.
Is this story over? Frankly, we doubt it, especially if Gain’s share price continues to drag around in the doldrums. Stay tuned to LeapRate…
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