|Capital Management & Investment
||EPS - Basic
||Market Cap (m)
|rambutan2: Hi Linhur,
Potential prob is how CMIP going to fund its share, if it comes down to that. At current share price would mean big dilution for any shareholders not participating, that's if concert party et al prepared to cough up. But if don't, then CMIP's share of Algeco gets diluted. Hmmm...|
Osmond told to bid for CMI
Merger fever is with us again. The City is awash with takeovers, but here's one that nobody wants.
Capital Management and Investment certainly has no desire to be bought by a little concert party that already has 37pc of its shares.
The party members would much rather go to one of the pizza restaurants that Hugh Osmond used to run than bid for CMI. Meanwhile, 35pc of CMI'S investors have given irrevocable undertakings to treat the concert party more disdainfully than an evening with Des O'Connor.
The only audience that wants to be entertained is the Takeover Panel, which is conducting a takeover performance by an orchestra that simply doesn't want to play.
Over the past few years, CMI has morphed from being a menswear chain to exploiting the dotcom boom and then being used as a vehicle for a takeover tilt at pubs to hotels group Six Continents.
Now it has a nice little investment in a modular construction (please don't call them portakabins) company. But the portable company has recently flushed up a takeover of a portaloo firm (you really couldn't make this up) and that meant some new investments by the concert party members.
At this quaver in the performance, the Panel decided the concert party was bigger than when it last checked four years ago. The result already looks like a farce.
The Panel could have waved at the concert party members until they sold their 37pc holding back down below 30pc. Or forced an extraordinary general meeting to give CMI shareholders other than the concert party the chance to approve the arrangement. Instead it is orchestrating a takeover at a hefty discount to CMI's share price. If anyone is foolish enough to accept, might there be a mis-selling investigation?|
|linhur: Hi rambutan
Just spent a couple of days looking at the documents.
Quite a complex set up.
Downside is that Algeco/Elliott do not do the business.This is unlikely as CMIL have 2 directors on board at Ristretto and so have an inside view on proceedings even if they have little control. If the investment does not perform the convertible loan means the concert party can increase their stake from 37% to 58.5% at a cost of approx 10p per share.
The upside is that Ristretto/Algeco is refinanced by December 2006 and the gains are distributed to CMIL and the loan is converted into say 70mill shares at say a cost of 14/15p.
The Loan will only be taken up if the deal for Elliott is done. Downside is 12% interest whilst it is running - free load for concert party.
I am encouraged by the amount of money the directors/concert party have put/ are putting into CMIL.
The current share price is a bit high but if you already hold I suggest you keep on a 18 month holding time.I would only buy more if share price comes back to 10/11p.
ps might go to meeting if I can get up in time!!|
|petejay: At EGM today shareholders gave go ahead to invest up to 50million euros in Ristretto Holdings and then bring this company to AIM via a reverse takeover by the end of September.
Will this be good news for the share price?|
Capital Management share price data is direct from the London Stock Exchange