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Shares in Auction Technology Group (ATG) soared nearly 20 per cent this morning after the online auction platform said it had rejected 11 takeover approaches from its largest shareholder, FitzWalter Capital. 

The London-based private capital firm first approached the company in September, but the board said the proposal lacked financial terms. Since then, FitzWalter has made 10 more informal bids, the latest on 23 December with an offer price of 360p in cash. That compares with a target price of 815p from Deutsche Numis.

ATG’s shares are down more than 40 per cent over the past year even after Monday’s rally, trading well below IPO levels and a fraction of their 2021 peak. Weak acquisitions, growing debt and uneven performance, including a profit warning in August, have weighed on investor sentiment. 

ATG’s board said the proposals “fundamentally undervalue” the business and represent an “opportunistic attempt” to acquire the company at a time when its public market valuation is “disconnected” from its fair value. It called on FitzWalter to either put forward a fair offer or step aside. FitzWalter owns 21 per cent of the company, buying in a year ago when the auction company was trading at over 500p.

The board said it had planned on keeping discussions private but chose to go public after FitzWalter said it would make its own announcement on 12 January. The firm now has until 2 February to confirm whether it will make a formal offer or walk away.

The directors backed management’s strategy, pointing to the potential for network effects – more lots attracting more buyers and sellers – alongside higher-margin services such as digital marketing and software tools. An update is due with the AGM trading statement on 22 January.

Defence shares rose across Europe on Monday following the US administration’s intervention in Venezuela over the weekend.

The capture and removal from power of Venezuelan president Nicolas Maduro “removes one of the key items on the US administration’s foreign policy focus list” and turns attention towards both Greenland and Ukraine, analysts at Jefferies said.

US President Donald Trump said in an interview with The Atlantic over the weekend that “we do need Greenland, absolutely ... we need it for our defence”, prompting Danish prime minister Mette Frederiksen to call on the US to halt threats to take over its territory.

A proposal from France last year to place troops in Greenland was declined by Denmark “but the deployment of EU troops to Greenland may once again be on the agenda”, Jefferies analysts said.

The prospect of Nato’s most powerful member looking to acquire the territory of a smaller ally “introduces a new and uncomfortable source of instability into the European security order”, HanETF’s head of research Tom Bailey said.

Defence shares had de-rated towards the end of last year as investors grew concerned that European governments might not stick to increased spending pledges if a peace deal were thrashed out between Russia and Ukraine.

However, against the current backdrop “the defence spending commitments and capability pledges made by European governments in 2025 look increasingly structural, rather than cyclical”, Bailey argued.

In the UK, shares in BAE Systems (BA.) and Babcock International (BAB) rose by 4 per cent, while Chemring (CHG) and Qinetiq (QQ.) shares were both up 3 per cent. On the continent, shares in Rheinmetall (DE:RHM) and Saab (SE:SAAB.B) rose by 7 per cent, while Leonardo (IT:LDO) shares were up 6 per cent.