The Speedcast International Ltd (ASX: SDA) share price is the best performer on the S&P/ASX 200 index on Tuesday.
In afternoon trade the remote communications and IT services provider's shares have stormed 8% higher to $3.77.
Why is the Speedcast share price charging higher today?
Investors have been fighting to get hold of the company's shares amid speculation that it might be the latest company in the telco space to be a takeover target of private equity.
This follows the $5.25 cash per share approach by EQT Infrastructure for telco and dark fibre company Vocus Group Ltd (ASX: VOC) which was announced yesterday and the acquisition of Vodafone New Zealand by Infratil Ltd (ASX: IFT) and Canadian firm Brookfield Asset Management earlier this month.
In fact, according to the AFR, the same parties that have previously shown an interest in Vocus and Infratil may be interested in acquiring Speedcast.
The report suggests that these potential suitors may have their eyes on Speedcast's global footprint of 80 satellites and 40 teleports.
But who would acquire Speedcast? Due to its size, Speedcast is being seen as big enough for a financial investor or a new satellite company, but also small enough for a global giant to acquire it as a bolt-on.
It may also be an opportune time to make an acquisition. Due to its disappointing underperformance over the last 12 months, the Speedcast share price has tumbled significantly lower.
For example, even after today's strong gain the Speedcast share price is down around 45% from its 52-week high of $6.83.
And whilst at this stage it is only speculation, sources have told the media outlet that at least one party was running the numbers on Speedcast and is considering its funding options. Speedcast has declined to comment on the speculation.
