Moolen shares rise after US stake reports

Shares in Dutch specialist market maker Van der Moolen Holding rose to nine-month highs today amid fresh talk of a possible takeover…

Shares in Dutch specialist market maker Van der Moolen Holding rose to nine-month highs today amid fresh talk of a possible takeover ahead of its full-year results due later this week.

"There is fresh talk that Van der Moolen could be a takeover target. I'm not sure why anybody would think about doing this, considering their recent results, but they're out there nonetheless," one Amsterdam trader said.

The talk might have been boosted by last week's announcement that US broker Schwab held a 6.25 per cent stake in the market maker, while Fidelity Management & Research held 3.7 per cent.

By earlier this morning Van der Moolen shares, which rose as much as 7.5 per cent early in the session, were up 5.7 per cent to 6.46 euros, valuing the firm at about €250 million ($326.2 million).

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Van der Moolen, one of the New York Stock Exchange's seven elite market makers, will report 2004 results on Thursday. It is expected to report a full-year net profit of €15.5 million versus a loss of €15.9 million in 2003.

Chief executive Mr Fred Boettcher told Reuters in December that Van der Moolen was looking at several potential takeover targets, but some investors have been hoping the weakened company could itself be bought by a rival.

Van der Moolen and other market specialists have been hurt by a scandal over trading on their own accounts at the New York Stock Exchange and worries over a move to electronic trading there.