Watches of Switzerland Shares Surge to Three-Year High Amid Takeover Speculation
The luxury watch retailer's stock climbed significantly as reports emerged of potential foreign acquisition interest.
Shares in Watches of Switzerland reached their highest point in three years after reports indicated the company has been in discussions with potential buyers in recent months.
The stock saw an intraday jump of as much as 8 percent, reaching 778.5 pence, a level not observed since May 2023. The shares concluded the trading day up 4.2 percent, or 30 pence, at 749.5 pence, bringing the valuation of the FTSE 250-listed Rolex seller to approximately £1.75 billion.
This heightened interest in Watches of Switzerland occurs within a broader trend of increased takeover activity targeting London-listed firms by overseas bidders. Several other UK companies, including Lloyd's insurer Beazley, asset manager Schroders, and laboratory testing firm Intertek, have recently been acquired by foreign entities. Additionally, warehouse and data centre group Segro is currently contesting a £12.6 billion bid from a U.S. competitor, while budget airline Easyjet is involved in a bidding war. Tate & Lyle and the owner of William Hill have also agreed to separate sales.
The surge in takeover bids has prompted concerns regarding a potential exodus of companies from the London stock market. Mergers and acquisitions expert Patrick Sarch of White & Case noted that the UK has become a "highly attractive hunting ground for overseas bidders."