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How High Can Hipgnosis Songs Fund Bidding Go? Some Investors Think Higher


The Hipgnosis Songs Fund bidding war can go higher, according to trends shown from some investors.

On Tuesday, shares of HSF rose as high as 1.03 pounds ($1.28) respectively, 3.2% above Blackstone’s offer, and closed at 1.01 GBP ($1.26), 1.6% above its bid. Investors who want to capitalize on an eventual acquisition will buy HSF shares up to — but not equal to — their expected deal price. “If all else is equal,” Stifel analysts wrote in a Monday (April 22) note to investors, Concord can outbid Blackstone because it has a lower cost of capital — Michigan Retirement Systems, a state pension fund — and a superior ability to “extract revenue from an under-managed portfolio.”

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