Spotting likely takeover targets can be a rewarding investment strategy

One clear signal of companies with takeover potential are those with inferior margins relative to their sector

Last Friday week, when I checked the movement in my equity portfolio after close of business, I was pleasantly surprised by what I think was the best one-day portfolio performance in many years – with the portfolio up 4 per cent on the day overall.

Two factors lay behind it. First, I purchased Unilever last June, and the bid on the day saw the shares rise by 14 per cent. But as the ...