The Motley Fool

Lendlease share price rockets higher on takeover speculation

The best performer on the S&P/ASX 200 index this morning has been the Lendlease Group (ASX: LLC) share price by some distance.

At the time of writing the international property and infrastructure group’s shares are up 8.5% to $13.83.

Why is the Lendlease share price rocketing higher?

Investors have been scrambling to buy the company’s shares after a report in The Australian claimed that it was a takeover target.

Lendlease is currently working on a sales process for its engineering and services business, but it seems that someone has its eyes on more than just this business.

According to the report, a major Japanese company, suspected to be Mitsui, is believed to be plotting an acquisition of the company.

The Japanese company is rumoured to be interested in acquiring the company and then breaking it up and offloading different parts to other suitors.

At this stage, though, it is unclear whether an offer has been made and what price has been offered if one has.

What now?

Whilst at this stage this is pure speculation, I do think there’s a good chance that these rumours are true.

After all, even after today’s gain the Lendlease share price is trading 36% lower than its 52-week high of $21.73 after being sold off following a series of write-downs. At this level I think the company would be an attractive takeover target.

But until the company confirms that this speculation is correct, I would suggest investors stay clear of its shares and focus on other investment options.

I think the likes of Aventus Group (ASX: AVN) and Cedar Woods Properties Limited (ASX: CWP) are trading on attractive valuations and offer generous dividend yields. This could make them good alternatives for the time being.

And here are five more shares that could be too cheap to ignore right now.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now