Shares digital

Premiere AG (PRE:XETRA) €13.40

Go long on Germany’s biggest pay-television company, listed in Frankfurt, for a quick, juicy profit. Rumours that France’s Vivendi (VIV:EURONEXT) will launch a takeover bid for the group have cropped up again, and TradIndex’s Manoj Ladwa says the bid could come in as high as €16 a share. Around 3.25 million households pay to watch Premiere’s 27 different television channels and 21 audio channels. The Munich-based company has been a takeover target since its shares listed in 2005, and Spain’s Sogecable (SGC:IGBM) and American cable television group Comcast Corp. (CMCSA:NASDAQ) have in the past been mentioned as potential suitors. Premiere’s former chief executive, Georg Kofler, was reported as saying that the company is regularly asked to discuss deals. After the price tested the €15 level, first in November and then last month, we think it’s worth jumping in, as the shares could easily edge higher towards the €16 level.

ACTION BUY Prem. AG • Target price €14.85 • Stop loss €12.50