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Allco Finance Group, an Australian asset manager, yesterday requested a suspension of trading in its shares, amid reports of talks with Macquarie Group on a possible takeover.
Allco, whose shares were hammered last month on concerns about its high debt levels and an opaque business model, did not give reasons for the suspension but said it planned to make an announcement.
An Allco spokeswoman declined to comment on the report while Macquarie officials were not immediately available.
On Monday, the company placed its shares on a trading halt for two days pending an announcement. The suspension would give Allco more time before making an announcement.
The Australian Financial Review newspaper said yesterday that Macquarie had held discussions with Allco about a possible buy out, although no deal was agreed. The report said the trading halt was not related to a deal being finalised.
Allco, which is due to release its first-half profit tomorrow, earns most of its revenues from leasing of aircraft and ships. But it has been growing its specialised funds management business by selling down assets from its balance sheet.
- REUTERS
