Tabcorp said yesterday that it has no knowledge of a mooted takeover bid for the company, but suggests rumours of a bid may be why its share price rose strongly on Tuesday.
Tabcorp says the rumours had been published in an online column of The Australian Financial Review on Tuesday.
During subsequent trading, Tabcorp shares rose from $6.34 to close at $6.63, after rising as high as $6.76 on Tuesday.
The shares finished at $6.47 yesterday, down 16c after the denial.
The ASX queried the company over the price rise on Tuesday.
In its response, Tabcorp said it had received no takeover offers, and was unaware of any in the offing.
"Tabcorp is not aware of any takeover proposal in relation to it, and has not received any such proposal from any person in relation to it," the company told the ASX.
Tabcorp said it received various approaches or proposals for its businesses or assets from time to time, but "Tabcorp is currently not considering any such proposals".
Shares in RCG Corporation Ltd, owner of The Athlete’s Foot’s (TAF), rose 4c, or 8.7%, yesterday after a solid upgrade.
The shares closed at 50c yesterday.
The company said in the statement to the ASX that consolidated pre-tax profit growth would grow by more than 20% in the year to June.
The company said The Athlete’s Foot’s 142 store chain has continued its strong sales run with like-for-like sales growth of 9.7% for the year to date to the end of April 2010.
"Current indications suggest that like-for-like sales for May 2010 will be close to those of last year," it said in the statement, referring to the 17% increase on a like-for-like basis reported at second half of last year.
The company said that was an "outstanding achievement given the 25% sales growth in May 2009, following the stimulus payments made by the Rudd Government at that time".
Expectations are that full year sales growth will be at the upper end of guidance provided by the group in its half year results.
It says TAF continues to roll out its successful larger store model, and will have converted or opened at least 30 such stores by Christmas 2010.
"Subject to site availability, the business has reaffirmed its commitment to converting at least 12 existing stores and opening five new larger format stores each year," the company said.
Australia’s Foreign Investment Review Board (FIRB) yesterday delayed a final decision on whether China’s Bright Food Group can go ahead with its mooted $US1.62 billion bid for a sugar unit of CSR.
The order by the board, officially issued on May 19, will continue to block the deal for at least 90 days, while it considers the proposal.
CSR shares finished at $1.635, up 2.5c.
