|Berkeley Scott Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Berkeley Scot (London Stock Exchange): 0 recent articles
|sjc: LONDON (AFX) - A Bioglan Pharma PLC share issue would probably create some
share price weakness, but this would represent a strong buying opportunity,
according to WestLB Panmure analyst Emma Palmer.
A press report that Bioglan's institutional shareholders are putting
pressure on the company to make a 200 mln stg share issue to fund the
acquisition of Bristol-Myers Squibb's skin-care arm saw Bioglan's shares fall to
390 pence at the outset.
By 11.04 am, however, the stock had rallied to show a gain of a 1/2 at 398
as dealers adopted a more positive stance on a possible share issue.
The 484 mln stg acquisition would give the company a much bigger presence in
the US and turn it into one of the UK's largest independent drugs companies. The
company's plan to finance the deal via increased borrowing, however, has
triggered worries about the resulting high level of debt.
Since the deal has not yet been finalised -- and there are no guarantees
that it will happen -- there are no details and any comments made are
speculative, said Palmer.
However, since the number of shares needed for the suggested 200 mln usd
upfront payment would increase issued capital by a third at present levels, the
analyst expects there to be some price weakness and believes that this
represents a strong buying opportunity.
An initial payment of 200 mln usd would increase gearing to 167 pct from the
current level of 60 pct. The press rumours suggest that institutional investors
are unhappy with this level of gearing and are instead pressurising the company
to issue new shares.
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Bioglan Pharma(BGP) GB0004342670
C(p) -1.25 C(%) -19.231 C 5.25 B 5.0 O 5.5 H 6.25 L 4.75 Op 5.75 V 3,238,599 T close A
GOOD CALL EMMA.|
|paul dsp: Think about how much you would be willing to give shareholders if you represented somebody with money to spare to take this company off their hands. It won't be 0 pence, I shouldn't think, but it wont be very much either. At the moment, it is dying on its own, and any offer will be pitched to persuade Terry Sadler, and any other major holders, to walk away and not make a fuss. It is possible that a profit on the current share price can be made (especially as it has dropped 20% during today), but it is most likely that the offer will come in around, or maybe a little under the open market price.
For a company that makes a good case study of this sort or situation, look at the last few months for Cedar (CED)
Good luck all. And remember, nobody here actually knows what will happen, they can only speculate.
|glynwiseman: Surely this deal should be good for the share price but it has dropped 19% today - Have I missed something here? and can anyone explain why the price has dropped so much today?|
|wetdream: Presumably with Goldman Sachs' guidance and the OK of the banks, it looks like BGP is making a tactical withdrawal from the US, transferring marketing rights to Quintiles, and paying down their debt.
Since most of their current revenues were in Europe in any case that doesn't seem too bad, considering their dire condition.
However, it must severely hamper their plans for global domination of the dermatological market!
But what does it all mean for the BGP share price?!
No doubt Sadler will (correctly) take the biggest hit.
Worth a punt @ 7p?|
|mali7: RocketMan! I never ramp or deramp, and those buying without their own research can ... Anyway I have seen you ramping and deramping without evidence!
What I meant is that when institions get more confident about BGP then the share price will start rocketing up, because of their buyings. Until now the share price has moved very slowly, + - 0.5p, and considering the amount shares bought it's only small amounts. But when instituions start buying it will go up quicker, which means those waiting have to pay a higher price for the share as the demand increases.|
|catapuss: That is obviously how Bioglan have got themselves into such debt. Apply the same criteria to their products as their share price. Don't they know that the way to drastically increase sales and revenue is to charge much higher prices? Nobody wants to buy when the price is at an all time low, they want to see it increase 50% first, just to show it was worth what they were charging in the first place!|
|mattj123: Any idea as to why the sells today have not shifted the BGP price downwards?|
|saturn5: Happy New Year to all BGP holders
The way I see it
SKP will be tied into BGP and the share price of SKP is on the up.
Thus I do not think all is lost with BGP.
Elan is a tip in some papers
You have to be in it to win it.
Best of luck|
|redmanski: BGP price target £6|
|custardpie: I think it is a case of out of the fryingpan and into the fire, by pushing through the deal wether funded by debt or equity will have a downward effect on the share price as we have all ready seen(althought the effect could well be factored into the price by now) By withdrawing from the deal this will just go to highlite the indecisevnes of management, the rifts that are there due to Sadlers one man stand against all the advice of his own board and brokers ,all this will not inspire much confidence in the city and imho this has not been factored into the current share price.We all know what happens when deals collapse in the city.I hope though this will be a short term reaction and hopefully BGP product line will help them,especially as they look at the second part of the year as being better than the first.|
Berkeley Scott share price data is direct from the London Stock Exchange