Chinese Start Buying Fitbit Shares After Big Decline
A Chinese investment Company is believed to be trying to move in on Fitbit after it was discovered that they were secretly buying voting shares in the US Company.
Fitbit said it has not received a takeover bid from a firm called ABM Capital Ltd., who are based in Shanghai, attempts to contact the Company have proved difficult.
The buy-up of share in the fitness Company, follows the discovery of a U.S. Securities and Exchange Commission filing that said a Chinese firm was bidding on some shares.
The filing was triggered by what ABM called “preliminary communications made before the commencement of a potential tender offer.”
In a statement, the fitness-tracker maker, said, “Fitbit has not received any communication from ABM Capital, or any other firm, regarding a reported offer.”
ABM Capital’s phone number did not appear to be working, and the firm could not be reached for comment.
According to the SEC filing, ABM is interested in acquiring Fitbit’s Class A shares at $12.50 each. The Class A shares account for 24% of the company’s voting rights. Fitbit’s shares were trading at $8.41 on Thursday morning before they were halted.
Fitbit’s share price has declined 34% since last week, when the company released disappointing third-quarter results.