The Spanish Securities and Exchange Commission (CNMV) has suspended Talgo, S.A. (BME:TLGO)?s share price as a precautionary measure and with immediate effect after its shares suddenly shot up 10% on the stock market due to rumors of a takeover bid. Last November, the train manufacturer confirmed the interest expressed by a Hungarian business group to acquire 100% of the company at a price of EUR 5 per share. On February 08, 2024, an information published by El Confidencial pointed out that this Hungarian company (Magyar Vagon) was already finalizing this operation.

Immediately, the Spanish company's shares began to rise on the stock exchange. In response to these rumors, the CNMV has decided to suspend trading, at least while the company prepares the release of a new insider information report providing more information on the matter. Before the share price shot up, Talgo shares were worth EUR 4.4, far from the EUR 5 that Magyar Vagon would pay to take over the company, so the shares reached EUR 4.78 before the suspension of its listing.

When this possible operation came to light in November, Talgo was trading at EUR 3.9 and the same situation occurred, its shares shot up to EUR 4.4, as the premium to EUR 5 reached 27.7%, and the CNMV suspended it for a few hours. The purchase of Talgo for EUR 5 per share would value 100% of the company at around EUR 617 million.