Blinkx shares soar on bid speculation but directors deny rumours

by Jacquie Bowser Brand Republic 09-May-08, 15:20

LONDON - Shares in Blinkx shot up 50% to almost 40p this morning, forcing the video search engine's board to deny speculation that it was in takeover talks, after reports that Google and News Corporation were considering a bid.

Blinkx's shares surged to 38.25p by around 10.30 this morning, but they have since dropped back and are now trading at 27.61p, which is still well above its average price of less than 20p.

However, the video search engine, which was founded in 2004, has played down the suggestion of possible takeover bids.

The company said in a statement: "The board of blinkx plc notes the recent increase in the company's share price and confirms that it is not aware of any external bids or bid-related reason for the movement."

Blinx floated on London's junior AIM market in May last year after merging with UK search engine Autonomy.

Analysts said this may be where the speculation is stemming from, as after May 24, a clause expires which stipulates that $50m should be paid to Autonomy in the event of a buyout.