Avanti Stock Rebounds after Chief Executive Buys Shares
PARIS — Shares in satellite broadband startup Avanti Communications of London, which sank 40 percent July 10 following the company’s warning that it would not meet its revenue target, recovered modestly on July 11 following share purchases by Chief Executive David Williams.
Avanti, which has been seen alternately as a speculative play on Ka-band potential in Europe, Africa and the Middle East and on the possibility that the owners would sell the company outright, saw its stock take a vertical drop July 10 from the opening bell.
By the close of what for Avanti was a high-volume trading day on the London Stock Exchange, shares were down 40 percent, to 145 British pence ($2.24). That same day, Williams concluded a purchase order for 14,200 shares at 176 pence per share, the exchange reported.
The recovery July 11 was modest but resulted in a 14 percent rebound, closing at about 166 pence, with more than 100 million shares traded. Before the close, Williams was back in the market, purchasing 15,000 shares at 166.25 pence apiece, the exchange said.
Avanti told investors July 10 that the company’s growth potential remained intact but would take longer than expected to translate into revenue.