Square Mile trying to read smart meter firm gossip

THERE’S buzz aplenty around smart meter company Calisen.

The firm was owned by American private equity giant KKR before floating on the London market in February this year at £2.40, raising £329million in the process.

It was a boon for the City as it was the first flotation since the listing of train ticket group Trainline – another KKR investment – in June last year.

So when speculation began to swirl in the Square Mile several weeks ago about a potential takeover bid at £2.50 a share for Calisen, market veterans were scratching their heads. The likes of Cinven, Carlyle and Australian infrastructure fund First State Investments were being rumoured as potential bidders.

However, people familiar with the situation are insisting there is no truth in the gossip.

They say the more likely scenario is that investment bankers at Goldman Sachs – once dubbed the ‘vampire squid’ for its success at sucking money out of the global financial system – are punting the idea to private equity investors in an attempt to drum up business.

This scuttlebutt sounds like a bit of a longshot.

OKYO Pharma shares took a battering last week but investors might soon be on the receiving end of some welcome news.

Earlier this month, American eye surgeon Dr James Khodabakhsh joined the firm’s scientific advisory board as chairman. He is head of the Cedars-Sinai clinic in Beverly Hills, Los Angeles, which treats Hollywood stars and directors as well as popular singers.

Now City sources say the company – which is developing a treatment for dry eye – might see another high-profile healthcare scientist join in the next few weeks.

The new recruit is said to be the award-winning inventor of two drugs that generated sales of more than $11billion.

SOME speculators have placed bets on Highland Gold Mining, in which Chelsea FC owner Roman Abramovich has a 40 per cent shareholding.

He has agreed to sell his stake to Fortiana – owned by Russian entrepreneur Vladislav Sviblov.

Fortiana has offered Highland’s other stakeholders a £3-a-share deal to buy the whole group for £1 billion.

Highland’s independent directors, advised by Citigroup, have urged shareholders to take Fortiana’s offer. Hedge funds though are nibbling at the stock, even though it trades at just a 1 per cent discount, around £2.93 at Friday’s close, to Fortiana’s offer. Why?

There’s an outside chance an interloper, such as Barrick Gold, may make a counter offer for the outstanding 60 per cent of Highland.