3 stocks for your takeover-target watchlist

Financial Journalist
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Tencent Holdings’ 5% stake this month in Afterpay supercharged the latter’s share price, sparking speculation that heightened takeover activity in Australia is imminent. 

Takeover talk is predictable with the S&P/ASX 200 Accumulation index down almost 18% this year and the Australian dollar well down on a year ago. Coronavirus has pummelled strong and weak companies, creating opportunity for cashed-up predators. 

Caution is needed. As I have written many times, never buy companies on the basis of takeover speculation alone. In some ways, identifying a takeover target is the easier part: getting the timing right is much harder. Some takeover targets stay that way for years. 

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