Dyson up 57 pct as traders cite web chatter

Wed Jan 7, 2009 1:03pm GMT

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By Ben Deighton LONDON (Reuters) - Shares in materials technology company Dyson Group (DYS.L) rose 57 percent on Wednesday as traders pointed to talk in online chatrooms of a possible bid for the company.

Shares in Dyson more than doubled on Tuesday to 15.25 pence from 7.3 pence with trading volumes at their highest in more than a year. The stock was up another 57 percent at 24 pence by 12:47 p.m. with trading volumes again well above average.

A spokesman for Dyson declined to comment on the bid talk which appeared in online discussions on ADVFN, fool.co.uk and Interactive Investor and put the possible offer price at 40 pence.

Two traders pointed to the ADVFN post as a reason for the share price rise.

In November the company said it expected to miss its full-year profit target due to falling sales volumes, and warned it could breach its banking covenants next year if the downturn worsens.

(Additional reporting by Dominic Lau, writing by Paul Hoskins)

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