Fitbit Stock Lower as Takeover Bid Appears False

Shares of struggling health and fitness devices maker Fitbit (FIT) were down slightly in early Friday morning trading after the company said that it has not received a takeover offer after ABM, a mysterious Chinese company, made a bid for some of the company's stock, according to an SEC filing. 

The firm proposed to purchase Fitbit for $12.50 for all outstanding Class A common shares, a 32% premium over the stock's closing price Thursday. Those Class A shares represent 24% of the company's voting rights. 

Fitbit released a statement Thursday, saying "Fitbit has not received any communication from ABM Capital, or any other firm, regarding a reported offer."

Further adding to the unusual nature of the filing, Pennsylvania-based inventory management firm SRI is listed under the same address and phone number in Shanghai that ABM lists itself under, according to Business Insider. Additionally, this is the first SEC filing on record for the company. 

Fitbit's stock has been in the doldrums since its disappointing earnings report last week and is down 70% year to date. However, the stock jumped on news of the bid yesterday, closing the day up more than 3%. 

If the securities filing turns out to be a hoax, it will be the third high profile false takeover bid in recent years. Earlier this year Avon Products  (AVP) received a phony takeover bid, as did Kraft Heinz  (KHC) in 2015.

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