SOVEREIGN Food Investments’ share price hit a record high of R9.70 on Monday, prompting speculation of moves afoot to challenge the R9-per-share offer from Country Bird Holdings (CBH).The spike in the share price came in the wake of the release on Monday of a trading update by Sovereign, which showed that in the six months ended August management had coped reasonably well with the tough trading environment.The share price ended at R9.30, the same as on Friday. Unfortunately for the board, the performance was not sufficient to avoid the devastating effect of cheap imports and the drought. The company is expected to report a loss of 38.5c-56.5c per share for the six months. In the previous interim period, Sovereign reported earnings of 89.6c per share.The operational update is good news for Sovereign shareholders, but better news lies in the possibility of an attempt to frustrate CBH’s bid to get control, according to analysts, who declined to be named.While it is difficult to imagine...
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