Speculative investors have targeted central London specialist Benchmark.
This week, Benchmark said Cantor Fitzgerald had taken a 3.3% stake in the company, which is undertaking a complete review of its business. This, in turn, could lead to a sale or break-up.
Cantor is understood to be holding the stake which makes it the fourth-largest shareholder as a hedge against spread betting and contracts for difference, a derivative product.
CFDs and spread bets allow an investor to gain exposure to share price movement without owning shares or paying stamp duty. Benchmark’s share price has risen 40% to 251.5p since it announced the review with its final results in September.
The company, which has been hit by the falling central London market, is considered likely to liquidate its portfolio and return the cash to shareholders.
However, a take-private could be facilitated by its two major shareholders: chairman Tan Sri Quek Leng Chan, who controls 34.5%; and London Capital Holdings, with 34.6%.
A further announcement on the business review is expected early next year.
