Endace Share Discussion Threads

[edwardt] 07/3/2013 15:47

i think on balance we were simply done by the greedy endace managers who screwed minority shareholders - simply my opinion!

[aspex] 01/3/2013 19:34

Cash arrived
Done and dusted.

[aspex] 27/2/2013 07:49

Maybe it's about time we put this one to bed.
Just wait for the cash.
I see another delay of 14 days to try to get Elliott.

[itchycrack] 13/2/2013 12:15

Pretty much all done and dusted then.

[aspex] 08/2/2013 07:11

It is getting very close to a decision on how Emulex is going to deal with the 10%+ held by Elliott.
If they want to delist from AIM,they will have to take these out and it is going to cost.
That should mean a price adjustment which will benefit all holders.
Comments please.

[edwardt] 06/2/2013 13:16

150,000 just gone through - someone is obviously keen to exit

[aspex] 14/1/2013 22:35

Emulex extends by 14 days to 12 Feb.
My account is held elsewhere and I have been asked for a decision on 23rd Jan to allow them to forward the numbers to Emulex. I am sure very few private holders have let their position be known yet. Emulex have obviously been checking with institutional holders and some will be keeping their powder dry also.
So who needs the time?
Are they short of the cash?
Maybe they should up the ante.
Maybe Elliott would roll over for another 50p

I now see the RNS which refers to conditions of the NZ Takeover Code.
Missed that on first reading

[edwardt] 09/1/2013 13:42

i for one have reduced my holding by about 80% - evidently selling to elliot as the sale happened in pm.

it appears to me as the biggest shareholder in emulex, there may be some sinister reasons why elliot are building a stake in endace. it is well known elliot want to oust the management team at emulex.If they stop the deal, they also stand a better chance of getting the cash on the emulex balance sheet by means of a special divi.

i seriously doubt they have looked at eda in detail and think the emulex board have found a hidden gem.

all in there is a risk the eda management might have this back fire on them. I will be back however if the deal falls through and the price goes back to its undisturbed price of £3

[aspex] 09/1/2013 08:13

K, Nice to see you back.
Any comments on the Elliott 10%+ and whether they can screw a bit more out of the bid?

I have a good use for an extra 5k or so to help pay for business class travel.

[knackers] 08/1/2013 15:39

I wonder if the NZ takeover code could be the problem Itchy...given the Govt grants that have been pumped into EDA since 2008/9, this is one hot political potato.

[itchycrack] 08/1/2013 09:42

Can't believe no one has come out of the woodwork with a better offer by now!

[aspex] 27/12/2012 15:11

Elliott pings Endace for 10%
Interesting as they put the squeeze on.

[aspex] 21/12/2012 08:04

The bones of the Grant Samuel valuation.
Maximum value is 434p
Emulex will walk away at less than 50%
Emulex could walk away at under 90%.
If Emulex takes over 75% they can apply to have EDA shares delisted and make trading difficult and could control all future EDA operations including dividend payment v reinvestment.
Emulex may increase the offer closer to the offer date (29th Jan 2013)but do not plan on it unless they really do want EDA. (IMHO they want it badly because their present business is not going at all well)
Please feel free to correct because the offer document is 168 pages so I only scanned it briefly.

[aspex] 20/12/2012 16:42

edwardt.
Emulex do not want a quoted minority on AIM. They want a clean deal and IMHO Elliot are putting on a squeeze that will benefit all holders.
Maybe I am wrong.

[edwardt] 20/12/2012 16:40

bid £5, trade entry price £4.75 + 25p profit. i suspect they are happy with that on a irr basis.

[tratante] 20/12/2012 13:51

Edward- any chance you could put that into plain english for us simple souls? Thanks!

[edwardt] 20/12/2012 10:57

Elliot on board = merger arbs - suspect they are in for the small return to march?

[knackers] 13/12/2012 10:35

That remains a possibility, Aspex, but I fear a distant one. Though for not one major network 'fabric' vendor (Juniper, IBM etc) or large SDN player to see the value in this technology beyond 3.3x historic sales is more than a bit baffling!

We shall see...

[aspex] 12/12/2012 19:20

Knackers,
You may well be an old cynic but as I see it IF the Endace tech is good enough then one of the bigger players (for which this money is small change) will come out of the woodwork. They will base their dollars on how much cheaper they can get Endace for, were it quoted on Nasdaq. There is still time for this even after the new year.

[knackers] 12/12/2012 17:47

I can't help feeling that the wool has been pulled over shareholders eyes by this deal. Can't say I'd be remotely surprised if the current senior management team are retained and have a significant opportunity for equity stake in whatever the 'new entity' is that Emulex 'spin-out'

Q. So what exactly have Spencer Greene and Rob Atherton been doing to drive shareholder value since they came onboard (13 and 7 months ago respectively)? Spencer has been totally invisible. Now looks pretty clear what a man of his intellect has been up to - working on a fire-sale at an acceptable enough price for Inst'l investors to swallow but highly attractive to a 2nd tier TechCo with faltering product suite. In time this could well provide an equity opportunity for him and the new and existing senior management team via a future Nasdaq listing perhaps?

Call me an old cynic but I've been struggling to fathom why a business that issues a profit warning decides to go virtually radio silent on its marketing and investor relations....am I suggesting the share price has been deliberately unsupported since March and left to drift..? Well now...

Yours,
Increasingly unimpressed

[aspex] 11/12/2012 18:54

Emulex share price is certainly already starting to celebrate victory.
Or is it relief against an ever decreasing performance?

[edwardt] 11/12/2012 12:35

one of the institutions has clearly capitulated with 75000 shares going through.

[itchycrack] 11/12/2012 10:27

Indeed Knackers, couldn't agree more!
Will be gutted if one of the big players doesn't make a counter bid before the year end. Here's hoping with fingers crossed!

[knackers] 11/12/2012 10:09

That pretty much sums it up guys....

The timing of this announcement (Festive period) certainly works very well for Emulex - as does the depressed price basis for that £5 bid! Few corporate DD depts will be in M&A mood just now, but at £5 Endace is going cheap - it's not even a premium to Panmure's target price! Certain 'parties' not wishing to name names, seem in an awful hurry to cash-in and given that the Endace product offering has never been better, why now, after all that hard development work!?

As I've always said Endace haven't had good enough command of their channels to market. That 'little' issue will be resolved by the conclusion of this process one way or another.

[edwardt] 11/12/2012 09:04

thanks aspex - good article.