Fitbit rises on purported bid, company says received no offer

Thu Nov 10, 2016 1:57pm EST
 
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(Reuters) - Shares of Fitbit Inc FIT.N jumped as much as 8 percent after a previously unknown entity calling itself ABM Capital Ltd said it had offered to buy the wearable device maker but gave up some of those gains after the company denied receiving any offer.

Fitbit said it had not received any communication from ABM Capital or any other firm regarding a reported offer, a spokesperson for the company said in an email.

Reuters was not able determine the veracity of the offer. (bit.ly/2ems8O1)

The filing, which contained little detail of the purported offer to buy the company for $12.50 per share, listed a Shanghai address for ABM Capital and also had a typographical error in Fitbit's name.

"We are skeptical of a deal consummating given legitimacy concerns around ABM Capital," Mizuho Securities analyst Betty Chen wrote in a note.

Reuters was unable to reach ABM with the telephone number provided in the filing.

The U.S. Securities and Exchange Commission (SEC), which received the filing, declined to comment.

A search on the securities regulator's public Edgar database did not show any other previous filings from ABM Capital Ltd.

Concerns about the security of Edgar, where thousands of public companies and money managers make official filings, were raised last year when a firm calling itself PTG Capital Partners offered to buy cosmetics maker Avon Products Inc (AVP.N: Quote).   Continued...

 
The ticker symbol for Fitbit is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) February 23, 2016. REUTERS/Brendan McDermid  - RTX287KH