Market Rumors Boost TelecityGroup Shares

Shares of European data center operator TelecityGroup moved higher Friday following market rumors that the company may be the focus of merger interest from industry rivals.

Shares of European data center operator TelecityGroup moved higher Friday following market rumors that the company may be the focus of merger interest from industry rivals, even though media outlets were split on the potential suitors. Telecity, which trades as TCY on the London exchange, started last week below 400 pence a share, but traded as high as 439.70 Friday before closing at 420 pence.

The Telegraph said its sources suggested that Telecity has been in discussion with colocation market leader Equinix for about three months, while The Financial Times pointed to KDDI, the Japanese parent of Telehouse, as a potential bidder. Equinix expanded into Europe with its 2007 acquisition of IXEurope. The speculation around TelecityGroup follows an active season for mergers and acquisitions in the U.S. data center market.

TAGS: Europe
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