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Fitbit And The Mysterious Suitor

Fitbit And The Mysterious Suitor
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Fitbit Inc (NYSE: FIT) spiked more than 4 percent Thursday morning before being halted on a circuit breaker for five minutes. Apparently, a firm called ABM Capital submitted a letter to Fitbit's board to acquire all shares at a price of $12.50 per share. The letter was disclosed in an SEC filing.

This is where things got a little strange.

When Benzinga called ABM Capital's U.S. office, a playback message said, "You're calling a number which has been disconnected." On ABM's website, the "Contact Us" form returned to a page that read "Page Not Found."

The viewing address of ABM Capital's North Carolina HQ on Google Maps shows a location in a residential area; Streetview doesn't show office buildings in the general proximity. ABM Capital also can't be found as a firm or business on LinkedIn.

Update: At 1:07 p.m. ET, Fitbit released the following statement to Benzinga:

"Fitbit has not received any communication from ABM Capital, or any other firm, regarding a reported offer. As the leader in the connected health and fitness market, we remain focused on delivering innovative products consumers love and are confident in our vision for the future."

The SEC declined to comment to Benzinga Pro when asked about the filing.

Fitbit has been a target of takeover speculation this year as the smartwatch maker has fallen out of favor with investors. Shares are down 70 percent in 2016.

What makes today's price action interesting is that the stock hit an intra-day high of $9.27, nearly $4 below the supposed take-out price.

Fitbit shares traded recently at $8.76, up about 2.5 percent on the day.

Posted-In: ABM CapitalNews Rumors M&A Hot Movers Tech Best of Benzinga


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