7:35 AM ET, 08/01/2013 - Reuters
Shares in Amsterdam-listed Gemalto are up 3.8 percent, the top gainer among European tech stocks, helped by a U.S.-based fund's increased stake and potential growth in payments through smartphones.
Gemalto shares are up 3.5 percent at 81.32 euros at 1130 GMT, after hitting an all-time high of 84.45 euros on news the Capital Group has 15 percent of the voting rights in the French smart card maker.
Traders say the stock is also being helped by the announcement yesterday that Isis, a venture of three of the top U.S. mobile providers, would expand a much-delayed mobile payments service nationwide later in 2013 after testing it with consumers in two markets.
The service, called NFC or near field communication, is a key potential growth area for Gemalto.
The announcement that the service could be expanded from Google's Android platform to others like Apple's is a big positive for Gemalto, traders say.
"Since many U.S. investors are short Gemalto because Apple doesn't currently use NFC - that could explain the strong rise in the share," one trader says.
Short bets on Gemalto total 22 percent of the shares outstanding, the highest among CAC 40 companies, according to Markit data.
Two filings with Dutch market regulator AFM show that Capital Group International and Capital Research and Management Company together own 15 percent of the voting rights. The filings do not give any reason for the investment.