Postmedia announced merger talks after stock price spike

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Two classes of stock went up more than 40 per cent, prompting concerns the deal had leaked

prompted the country’s largest newspaper publisher to go public with merger talks, on concerns news of the potential deal had leaked.

Tuesday’s trading in Postmedia illustrates the market swings that come with sudden spurts of interest in illiquid stocks. In the past year, there was only one other day, in January, when more than 15,000 Postmedia shares changed hands. In many TSX sessions, there is no trading in Postmedia stock.

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