Delta Share Discussion Threads

[volsung] 23/4/2010 16:07

Might be another bid?

[v11slr] 23/4/2010 16:01

How are they going to bounce when there's an agreed bid at 185p and no sign of any other bid? I think it's a done deal.

[volsung] 23/4/2010 15:47

Bought a few. Due a nice bounce

[ukinvestor220] 07/4/2010 10:52

Ex Div today

[hvs] 01/4/2010 10:37

Well done for sticking with it.

Where are the blackmailing HEDGIES all with OTHER PEOPLES MONEY.

[v11slr] 01/4/2010 10:36

Sold mine this morning, doesn't look like there'll be a competing offer so I'll put the money to use elsewhere.

[hvs] 31/3/2010 08:25

Where are the hedgies ?

All running for the door ?

[hvs] 31/3/2010 08:08

The HEDGIES here seem to have got a very bloddy nose.

All at the expense of other peoples MONEY.

[rainmaker] 25/3/2010 00:40

From the last annual report, released 10 March 2010 "Subsequent to the year end Delta EMD Limited has commenced a process intended to realise shareholder value through a disposal of the Delta EMD business, Delta EMD Limited's last remaining operation. The disposal process is well underway with considerable interest indicated."

Delta own 56.4% of EMD a leading global supplier of electrolytic manganese dioxide (EMD) used in the manufacture of disposable batteries worldwide.In the last year to 31 December 2009 EMD have made an £11mln profit.

regards

[rainmaker] 24/3/2010 23:40

FOR IMMEDIATE RELEASE

24 March 2010


Delta plc ("Delta")

Preliminary approach


The Board of Delta confirms that it received yesterday a preliminary approach
from a third party about the possibility of a competing offer for Delta and that discussions with the third party have commenced.

There can be no certainty that a competing offer will ultimately be made or as
to the terms of any competing offer if made.
A further announcement will be made when appropriate.



Rainmaker - 20 Mar'10 - 00:50 - 466 of 470 edit


Thank you, an interesting piece Cornishman. The market is agreeing with them since the Delta share price has continually traded at a premium to the bid price. I fully expect to see an improved offer or a competing bid as the offer is too cheap on fundamentals eg approx £300mln for a Company with cash flow generated from operations of £86.4mln

regards

[meadow50] 24/3/2010 11:53

Probable 210p eventual takeout price by valmont suggested by analysts maybe substantially increased in a competetive situation that we may now have.Fingers crossed!

[davebowler] 23/3/2010 15:38

.. (from crystal amber) the Fund acquired its original holding of 2.5 million shares in Delta from mid-December until mid-February at an average price of 145p. In January, Crystal Amber met management and presented proposals aimed at releasing embedded value within the business. At the beginning of March it was the subject of an agreed bid by Valmont at 185p (the dividend of 4.8p for 2009 was cancelled a few days before pay date). The current share price is 191p.

...the fund manager

He sent the attached letter yesterday. His letter points out that the Delta board did not update the market on their better than expected 2009 earnings before publishing full year prelims on 8 March (actual eps was 17% ahead of the Arden estimate). He believes this was surprising given that Delta issued a post-close trading update on 26 January.



Richard thinks the offer clearly undervalues the business as evidenced by the fact that Valmont's stock market worth has already risen by more than the enterprise value (market cap less net cash) of Delta plc and thinks that cancelling the 4.8p dividend for 2009 just 4 days before it was declared was not the correct way to treat shareholders.



..... a note from the Arden analyst who says: "I also published on Delta in January highlighting the value and long term strategic options for this group. I would note that I valued the business between 199p to 226p and placed a medium term price target of 195p. This was all before the results came out so far ahead of expectations."

[rainmaker] 20/3/2010 01:27

Another way of looking at the £284mln bid by Velmont is to work out the enterprise value ie subtract net cash of £146.9mln to arrive at a value of £137.1mln, and as annual pre tax profits for 2009 were £52.6mln, in effect Velmont is paying just over twice annual pre tax profits for the actual business which is derisory. Furthermore I feel it is safe to assume that we aren't at the top of the economic cycle so profits will increase further-from the annual report-


"The Group's 2009 results demonstrate the strength of the Group's market positions and management. Against a backdrop of more difficult economic conditions, the Group provided a further year of earnings growth, as well as substantial cash flows."

regards

[rainmaker] 20/3/2010 00:50

Thank you, an interesting piece Cornishman. The market is agreeing with them since the Delta share price has continually traded at a premium to the bid price. I fully expect to see an improved offer or a competing bid as the offer is too cheap on fundamentals eg approx £300mln for a Company with cash flow generated from operations of £86.4mln

regards

[tritan] 19/3/2010 22:54

Good read TC2. Glad they're holding off accepting the offer. Only wish they gave an indication of what they thought a reasonable offer price would be but suppose they wouldn't really wish to say in the article.

I'm happy to hold out as beleive the company is worth more.

Good luck.

[thecornishman2] 19/3/2010 18:39

This is a start:

Regards
TC

[thecornishman2] 19/3/2010 17:00

Not that I know of, but I am holding fire on accepting the offer until greater clarity is available.

[hvs] 12/3/2010 13:47

And get WHAT ???

[ukinvestor220] 12/3/2010 13:24

Corporate action notices being circulated by brokers now - I will refuse this offer.

[wjccghcc] 09/3/2010 14:35

Give it a chance. They haven't even dispatched the offer circular yet. It's not a final offer so can be raised if needed. Personally, I think we'll at least get the final dividend reinstated.

[hvs] 09/3/2010 13:05

Looks like the Hedgies are going to get their fingers BURNT here.

[kooba] 04/3/2010 18:20

whose doing the good deal?
Valmont Industries, Inc. (Public, NYSE:VMI)

82.08 +8.64 (11.76%)

the market cap of vmi is up by over $250m on this $430m deal

[mavros] 04/3/2010 17:45

The 2 analysts offering 12 month price targets for Delta PLC (DLTA:LSE) have a median target of 202.50, with a high estimate of 210.00 and a low estimate of 195.00. The median estimate represents a 31.71% increase from the last price of 153.75.

Took this off the FT site