- Summary:
- The Cineworld share price is up 2.41% today despite a tumbling FTSE 100 index.
- On a higher timeframe, LON: CINE appears to be heading for a retest for the 2p level.
- As per reports, the discussions for a Vue takeover have been frozen.
Cineworld (LON: CINE) share price is on its way to making a new all-time low. The largest British Cinema operator is currently in midst of its bankruptcy proceedings. It is currently running a formal auction of its assets but has failed to receive even a single all-cash offer.
On Friday, Cineworld shares showed a positive price action after opening slightly lower than yesterday. Till press time, the shares were up 2.44% on a day when FTSE 100 dropped by 136 points. Nonetheless, Cineworld stock still remains 25% below its year open.
Discussions For Vue’s Takeover Bid Halt
As per the most recent development, Vue Cinema’s bid to take over its rival has been frozen. According to Sky News, the sale process was being run by the Cineworld advisors. Vue took financial backing from its shareholders on a potential Cineworld takeover just a few weeks ago. Barring and Farallon Capital Management were among the investors who agreed to provide the capital for this deal.
Cineworld has already passed its first deadline for offer submission in which it couldn’t secure any all-cash deal. The news sent the Cineworld share price tumbling, which was performing well since the start of the year fueled by Vue takeover speculations.
Cineworld Share Price May Drop Below 2p
Technica analysis of the LON: CINE chart shows massive volatility spikes. Since the filing of bankruptcy proceedings back in September 2022, the price has seen massive surges and even bigger drops. There appears to be a good demand between the 1.8p-2.2p level as the price has bounced off these levels multiple times.
If it closes a day below the 2.02 level, then I expect the price to retest its all-time low of 1.80p. This low was made in August 2022 when the investors were unsure about Cineworld Cinemas’ future. Since then, the company has been trying to come out of the bankruptcy proceedings by looking for an appropriate buyer.
