![\"Young](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/04\/1b8b1432badfbfae080ffaa553152b10.jpeg\")
Image source: Getty Images <\/p>\n Image source: Getty Images <\/p>\n
The FTSE 100 and the FTSE 250 jumped on Wednesday (8 April) on positive news from the Middle East. But one name in particular stood out to me.<\/p>\n
Gamma Communications (LSE:GAMA) surged 16.6% on the day. I own the stock, but the rising share price gives me a real problem.<\/p>\n
In a lot of cases, stocks shot up because oil prices fell. That reduces the threat of inflation and lowers the chances of a recession.<\/p>\n
This, however, isn\u2019t why Gamma\u2019s share price went up. It\u2019s the result of the firm being the subject of takeover speculation.\u00a0The company confirmed on Wednesday (8 April) that it\u2019s in talks with potential bidders. And that has investors excited.<\/p>\n
There\u2019s no guarantee anyone will be interested in buying for the firm. But if they do, they\u2019re likely to pay above the current market value. On the face of it, that\u2019s a good thing for Gamma shareholders. But I\u2019m an investor and I\u2019m not pleased about the news.<\/p>\n
Despite the recent jump, Gamma shares are still down 29% in the last year. And the stock\u2019s still below the price I bought it at. That gives me an issue. I had been planning on adding to my investment, but that isn\u2019t so attractive with the share price 16% higher.<\/p>\n
I still think it\u2019s undervalued. But if no offer for the company materialises, the stock could fall straight back to where it was before the jump.<\/p>\n
The alternative, however, might be worse. If a bid does appear below the price I bought at, I might end up having to sell at a loss.\u00a0 Obviously, that would be a big disappointment. Not least, because I still think the business is in a really interesting position right now.<\/p>\n
Gamma\u2019s a business-to-business cloud communications provider. In short, it makes company phones work through the internet.<\/p>\n
At the end of the year, the UK\u2019s set to switch off its copper phone network, and a lot of firms haven\u2019t prepared. Those companies will need help. Gamma\u2019s a natural choice for a lot of them to turn to. But it has some big competitors \u2013 and they don\u2019t come much bigger than Microsoft.<\/p>\n
The firm can\u2019t match Microsoft\u2019s scale, but it has some unique advantages. These come from owning the telecoms infrastructure.\u00a0This means the FTSE 250 firm can fix customer issues directly, which Microsoft can\u2019t. And in mission-critical infrastructure, that\u2019s hugely valuable.<\/p>\n
I like Gamma Communications as a business and the stock still looks cheap to me. But the situation has become tricky.<\/p>\n
Takeover talk\u2019s put the share price in a strange sort of no-mans land. A lot depends on what happens next in terms of offers.\u00a0This isn\u2019t just\u00a0a short-term issue. If the company\u2019s sold, the outcome\u2019s permanent.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images The FTSE 100 and the FTSE 250 jumped on Wednesday (8 April) on positive…\n","protected":false},"author":2,"featured_media":12152,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5757,3699,5692,5,6],"class_list":{"0":"post-12151","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"tag-ftse-250","9":"tag-gamma-communications","10":"tag-share-price","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116390744744840524","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/12151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=12151"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/12151\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/12152"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=12151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=12151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=12151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}