Fitbit got a takeover offer but it looks fishy

Fitbit Charge 2_businessstreet_0271_CMYKFitbit

Fitbit has received a takeover offer from a company called ABM Capital, according to a filing with the Securities and Exchange Commission — but it looks fishy.

ABM Capital is proposing to purchase the company for $12.50 a share.

The address for ABM Capital on the filing is in Shanghai, China, and the Chinese number listed next to the chief financial officer, Kevin Mead, appears to be disconnected.

ABM's address in the SEC filing appears to be a shared office space.

No Shanghai-based ABM Capital could be found on the Bloomberg terminal.

Last week Fitbit crashed 30% after reporting third-quarter earnings that missed on sales and cutting its full-year earnings forecast. The maker of fitness trackers said it sees fourth-quarter adjusted earnings per share in a range of $0.14-$0.18, far below analysts' forecast for $0.75 according to Bloomberg.

If the filing turns out to be a hoax, it would not be the first time. Last year, Avon Products received a fake buyout offer from PTG Capital Partners via an SEC filing. Avon later confirmed to Business Insider that it did not receive any offer or other communication from any entity by that name.

Shares of Fitbit initially spiked following the news.

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More to come..


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