Ashoka India Equity Inve... Share Discussion Threads

[picobird] 20/7/2015 12:00

The main difference between a scheme of arrangement (SOA) & a bid is that the former is done through the target company's directors.
There is an interesting article which mentions that the SOA bid price can be up to 40% less than the traditional method of takeover.



I am wondering whether that fact alone would be sufficient to scupper the court hearing outcome in favour of the bid being rejected. Remember that the BOD have no interest in the shareholders (in practice) & are pushing this deal though 'on the cheap' for their old chums at Agilent.

I think the Anite BOD are aiming to save 40% by extracting the company from it's shareholders using this method. That is what the figures reflect. It is also the reason why the timing was so despicable coming as it did before the formal announcement of the 2015 figures.

[picobird] 18/7/2015 13:03

Zak Mir is a very skilled TA analyst & I have read a couple of his books which are quite outstanding.
The fact is that there is nothing for the shareholders to gain by agreeing to this takeover. Looking at the price channel calculation which is a standard tool in TA the shareholders are going to loose by the time the takeover completes.
Even though IC states that the P/E ratio of 20 is acceptable, one has to ask ' what has happened to the 20% to 30% premium' which is normal practice to add to a valuation.
The only parties who will gain from the takeover are (a) Keysight. They are basically desperate to get a foothold in Anites market. (b) The BOD. Here we have individuals who will be pleased to part with the shareholders. In 2013 the CEO took £6.5 mill as a remuneration package. That is a substantial percentage of Anites profit for someone who is a 'glorified accountant' (he was the CFO some years ago). Their new paymaster will remove the need for AGM's & the voting system.
It looks as if the private shareholders are probably in a 'check mate' position as the institutions would rather take their short term profits & run. If they could see a little further than their noses, they would do the sensible thing & either reject the offer or ask for a substantial increase in the bid price of 126p !!!

[picobird] 17/7/2015 16:53

Zak Mir provided a nice TA analysis shortly before the offer by Keysight showing a price target of 130p.



Zak Mir is a very precise analyst in TA & proves the 126p bid offer to be a discounted offer.

I think there is a case here for the institutions to request an increase in the bid price.

[picobird] 16/7/2015 10:17

16/07/2015
Another contract win for Anite

GrameenPhone selects Anite for end-to-end wireless voice quality and broadband data collection and analytics

Makes the 126p bid for Anite look like a down payment !!!

[butmac] 14/7/2015 12:38

Just a thought if a company was interested in Anite would it not be more advantageous coming in at the 11th hr. Rather than showing their hand and alerting competitors with the news media attention a rival bid would attract?

"Always look on the bright side of life"

GLA

[werty5] 13/7/2015 21:03

My attention is now turning to where should I invest next SEPU, LRD, CAR are all on my shortlist of technology stocks. Anyone else have any opinions obviously always DYOR. Oh and as an extremely high risk but possible high reward also looking at an increase in my stake of AVO which sounds like the product it is producing may disrupt the market. GLA and would like to hear about other people's stock picks. Sorry it is off subject to Anite but not much to say that has not already been said on that subject.

[mrsting] 13/7/2015 18:11

Thank you pico for all your efforts; much appreciated.

[jadeticl3] 13/7/2015 16:16

I note that 2 companies have had offers of takeover this morning, which the respective BODs have recommended. The offers each had a significant premium to their share price, at 46% in the first case and 49% in the second. These are not my calculations, and I have not investigated in any way, but the top line numbers again emphasise how low the derisory offer made for Anite is.

[irenekent] 13/7/2015 14:17

Thanks for your efforts pico. We can only hope.

[picobird] 13/7/2015 13:32

jadeticl3
You hit the nail on the head regarding more publicity being needed. I am presently contacting other competitors as to the possibility of them making a counter offer. It is pretty obvious that the professional firms that Anite are using are just sitting on their hands waiting for their commission to be finally paid. It is not in their interest to contact competitors.
All a waste of time I know, but I have plenty of time to waste............LOL

[rathlindri] 13/7/2015 11:58

I find Hargreaves and Lansdowne hard to beat

[butmac] 13/7/2015 11:47

Good points jade but lets hope there is an offer soon as pico said time is running out.I was hoping to see a slight increase in share price this morning in line with the Greece news and perhaps...?

Just had my Saga ISA sharedealing account taken over by Equiniti from Barclays. Signed in for the first time this morning and it doesn't look to good. The Barclays site was much better.

Anyone on this board recommend ISA sharedealing site.

Apologies going off subject but I have to get the ball rolling soon to get on with my investments. Any advice I would be most grateful for.
Thanks ...butmac

[jadeticl3] 13/7/2015 10:48

Perhaps the BOD, who clearly want a sale at any price, circulated all companies rumoured to "have any interest in buying AIE" to ask them to make an offer. Then only Keystone Cops came up with anything at the auction, and, as the reserve price was the existing share price, their offer was accepted!

It is a very low offer, but if you are very keen to sell you accept low offers. If you are not keen to sell you send someone who makes an unsolicited, low offer packing with a flea in his ear.

I was confident of a higher offer, but am beginning to have doubts. Pity this is not getting more publicity.

[picobird] 12/7/2015 14:54

The voting date is 30/07/2015.
Share dealings cease on the Court Sanction date in early August.
This coming week is probably the last practical week for a counter offer.
Cannot see the Institutions voting against the offer although in theory they should voice their concern at the lack of a premium having been paid by Keysight.

Having just viewed the iii forum, there does seem to be a lot of disgruntled individual shareholders complaining about the lack of a premium in the bid price offered.

[andyj47632] 12/7/2015 08:54

whats the last day another bid approach can be made?

[picobird] 11/7/2015 07:45

We missed the news that the Anite emulator has found it's way into another testing laboratory in Spain.



Looked last night at the incredibly low P/E that Keysight is managing to buy Anite at. The term Daylight Robbery comes to mind !!!
Next thought is, how on earth are competitors allowing the deal to proceed without putting in a counter bid so far. Have they not heard of the term 'bargain bin'. They should try having a look in it instead of only buying 'designer labels' selling at humongous prices.

Having looked at Anites takeover documents I noted a 23 pager relating to the Long Term Inventive Plan (options) which of course only relate to employees like the CEO & his sidekick.
Why is it I asked myself that so much time can be spent on this one document, & yet when it comes to justifying the acceptance of a bid of 126p from Keysight, no document justifying the bid exists ???.
Surely the CEO & the Chairman should put together a document of equal length (say 25 pages) with references to Industry Finance Accountancy Ratios & suchlike to actually justify the bid in mathematical accountancy terms. We all know that no premium has been paid by Keysight for Anite but surely the time has come for the Companies Act to require justification of a bid's acceptance along these lines.
More simply put - if a BOD believe a bid to be a good deal, they should have to prove it. IMHO none of the BOD are qualified to comment on whether a bid is sufficient in monetary terms except the finance men on the BOD. We know that they (the finance men) have no true allegiance to the shareholders, only towards their own interests. That is why the Companies Act should introduce a document that would prove whether a bid is competitive or not.

[tatsfield] 10/7/2015 12:25

Gambling on a competitive bid being made?

[mbmiah] 09/7/2015 20:35

Maven keep on buying it seems - what they upto

[picobird] 09/7/2015 11:47

Thanks Gerd. Will definitely have a good look at that one. I need to put some of that cash to one side for a house as I did the unbelievable & invested my house proceeds into AIE a year before the housing crash in 200? ( exact dates escape me ).
Yes I know, but it seemed a good idea at the time...........LOL. It won't happen again............promise !!!
Anyway, I retire this month & need to make some sensible decisions including which country to live in. Have not been in the UK for a few years. That's enough about me.
Let's hope we get that counter bid, but time seems to be running out.

[gerdmuller] 09/7/2015 11:02

Pico, If you haven't looked at SEPU before this is one you ought to add to your watch list seeing it looks like you are about to come into some cash.

This is one I have held and traded for several years and latest results show it continues to be a solid company. After the recent acquisition it looks set for further growth.

You might consider the price too high for you but it may be worth following as it is a very good UK tech co.

[butmac] 09/7/2015 10:20

Yes know what you mean Pico.
Try a months free trial to cancel the free trial just cancel the paypal debit then you don't have to worry about forgetting it at the end of the month.
The info on one company is all on one page and takes seconds to scan for your suitability also you can put in criteria searches Mkt Cap, Net gearing etc, saves a lot of time and hassel. I join for one month when I am looking for a new stock do my research over the weekend pick the stock buy and that's it until I want to buy again just £30. Wouldn't dream of a continual monthly sub when I only use it once a year or 18 months.

[picobird] 09/7/2015 08:48

Butmac
Will read up on it. Thanks for the advice.
Can never bring myself to part with money over things like that. Prefer to scrounge tips from anywhere & then spend days analysing the company concerned. Sometimes it only takes two minutes but the good companies need a lot of research. Will be reducing my portfolio by 80% after Anite.
Can't even bear to part with a sub to IC, just plain tight..........LOL

[butmac] 09/7/2015 07:35

Yeah good points Pico.

As regards picking new stocks have you read Jim Slaters "Zulu Principle" and tried the REFS site (Really Essential Financial Facts) I have picked all my companies from day one with this method. Use to have the paper version then Cd and now you go online. Cheapest rate is £30 for 1 month weekends only. They will give you a months free trial 24/7.

hxxp://www.companyrefs.co/

butmac

[picobird] 08/7/2015 19:53

Butmac
Good idea to stick it out.
At least we all know now why the directors are always smiling on the Anite publications. Let's just say it's a crocodile smile.
As for the payout. I was thinking October originally but it will be a fair bit earlier.
Time to move on & perhaps analyse as to whether the market is going into a bear phase.
Think I need to catch up with the thoughts of Warren B. Personally I cannot invest without giving a company a good going over on its fundamentals. TA is brill though.
So perhaps by the time le Tour de France is ending we will all know our fate...........LOL.
Certainly will not be investing in Keysight as I sincerely believe that they are on the decline.,

With the Chinese market in panic mode & bearing in mind that prices have doubled in 12 months, only contemplate stocks that fall 70% from their highs. Also bear in mind that we are probably headed for a global correction - bear market. The bull market cannot sustain itself after 2015 IMHO.