Cineworld share price soars by 50% on Hollywood takeover rumours

The share price of Cine rose by nearly 50 percent on Tuesday following takeover rumours circulating in the city.

While no concrete takeover is in the pipeline, it is believed that a US court ruling could open up the doors to a range of big-money potential suitors.

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The respective ruling saw the ending of the Paramount Decree – these were a set of rules regarding competitive matters established more than 70 years ago to stop blockbuster movie producers having too much control on the distribution channel.

With a big-scale operation in the US (Cineworld owns Regal), investors appear to have combined this changing legislation with Cine’s very depressed share price to sense the potential for a takeover which will inevitably come at a premium.

The takeover could theoretically come from some of Hollywood’s biggest producers.

But this is all just loose speculation, hence why Cine’s share price is on a roller-coaster today hitting an early afternoon peak of 62.50p before slumping back down to 51p.

After a string of delayed openings in its key markets, Cineworld shares remain one of the UK’s most shorted as fears continue over its ability to operate with some sense of new normality, even with restrictions being lifted.

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