I tipped clinical research business Premier Research back in December 2004 when the shares were 54.5p. They have since been up to 285p though concern at the amount of working capital the company was using and the departure of one of the founders in the spring have seen the shares slide back recently. Last week, however, the company announced that certain members of the management team had initiated talks aimed at launching a buy-out bid for the company. The shares have since picked up 15p to 115p.

This looks a highly opportunistic move. In July, the company produced an upbeat trading statement showing the order pipeline eight per cent higher and trading in line with the market’s consensus forecast. Since then there has been a further update in response to the fall in the company’s shares. This confirmed that the integration of recent acquisitions is going well and that new order intake is strong.

If you are still in Premier Research, do not rush to sell. The shares are probably selling for no more than about 12 times earnings at this level so bid premium is minimal.

Premier Research	AIM	0pm	p	p
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Other company articles:
AIM news			01/04/2008
Premier Research in bid talks			17/03/2008
Premier discussing possible buy-out			31/08/2007
Premier: follow the directors			10/11/2006
Premier: growth accelerating			10/05/2006