Chloride Share Discussion Threads

[jugears] 08/6/2010 08:31

Well I certainly wont be selling yet,ABB offer is a complete surprise to me & would not be surprised to see a much better offer from Emmerson (or others) in the comming Days.

[phillis] 08/6/2010 08:24

top slicing 25%

[jimbo55] 08/6/2010 08:20

Well done Guys. ;)

[phillis] 08/6/2010 08:17

Luvvly jubbly!!!

[fishbournetrader] 08/6/2010 07:46

Sorry Jange, you are too late. 325p offer from ABB. Hopefully we will have a bidding war if Emerson are still interested. Will this open at 325p or higher?

[jimbo55] 07/6/2010 22:18

jange, look how much it rose when the bid was announced. That's the potential downside if there is no further action.

Your choice Mate.....

[jange] 07/6/2010 22:14

Bailed out a couple of weeks ago. Very tempted again. What is the downside from here? Not I great deal I imagine.

[jange] 07/6/2010 22:14

Bailed out a couple of weeks ago. Very tempted again. What is the downside from here? Not I great deal I imagine.

[thorpematt] 07/6/2010 09:28

Yep this was mentioned on bloomberg ticker yesterday too. I Reckon on about 340p being the lowest that will get an acceptance...

[sportbilly1976] 07/6/2010 08:39

short piece in the S Times yesterday indicating a 325-340p a share revised offer to come as a minimum to be tempting for shareholders

[phillis] 07/6/2010 08:21

They aer coming back

The question is: with how much?

[jugears] 27/5/2010 22:48

YES I AGREE WITH YOU ,I AM STILL HOLDING & WILL PROBABLY BUY MORE.

[thorpematt] 27/5/2010 22:00

Funny because although I didn't commit when asked the other day 325 - 350p was where I saw the correct pitch for the bid BUT that said I have since read he whole report (all 46pages).

Frankly I REALLY like this stock, the section from CEO relating to the 2 core reasons to be cheerful REALLY resonate with me:-

"LONG-TERM GROWTH MARKETS
Despite the poor short-term economic environment, we remain confident in the long-term growth characteristics of the Secure Power market we serve. Two very significant long-term global trends drive growth in our markets:
Digitisation: the sustained growth in the use of digital data and processing in nearly all aspects of government, commercial and leisure activity drives demand for secure power solutions which protect mission-critical processes and applications. This phenomenon is as prevalent in emerging countries as it is in the developed world.
Energy Demand: as the world demand for energy grows so too does the demand for the infrastructure to generate and supply it to business and consumers. Secure power solutions are an important component of the infrastructure which ensures continuity and safe operation through the energy supply chain, from extraction and generation to transmission and distribution. The trend is accentuated as the developing world builds, and the developed world reinvests in, new infrastructure, particularly as energy sources change towards nuclear and renewable.
The strength of these two global trends underpins our confidence in the growth potential of the markets we serve....."

So I still hold half my original, should we fall back via lack of a bid, I will buy the other half back.

I don't care if Emerson go away and stay there.

[thorpematt] 27/5/2010 21:49

Emerson Electric Co. must raise its 723 million-pound ($1 billion) takeover approach for Chloride Group Plc by almost a fifth to tempt shareholders, said an investor in the British supplier of power-protection gear.

Emerson's 275 pence-a-share proposal "materially" undervalues Chloride and doesn't reflect merger savings, said David Stormont, a fund manager at Hermes, which owns about 1 percent of Chloride. Emerson's proposal was 34 percent higher than Chloride's April 22 closing price.

"The ball's in Emerson's court," Stormont said in a telephone interview today. "Something like 325 pence would be a minimum offer to be interesting to shareholders."

Emerson, based in St. Louis, is having a second attempt at buying Chloride, which would provide it with a hub to tackle the European market for power-supplies gear. Chloride management shunned the approach, leaving Emerson to take its proposal directly to shareholders.

Chloride "carefully" considered Emerson's indicative proposal and concluded it undervalued the company, Andrew Hayes, a spokesman for the British manufacturer, said by phone today. His counterpart at Emerson, Mark Polzin, said April 27 that the process had "just started."

Stormont, who has owned shares in Chloride for three years, said he hasn't received a call from Emerson. The U.S. maker of factory controls has spoken with Schroder Investment Management, according to fund manager Andy Brough. He declined to give details of the talks in a May 21 telephone interview. Schroder owns about 3.3 percent, according to data compiled by Bloomberg.

Scott Cagehin of Numis Securities Ltd. in London said a fair valuation for Chloride would be about 340 pence, based on historical takeover data. Emerson first approached Chloride with a per-share offer of 270 pence in 2008.

Prospects

"Management have done very well in positioning the business in attractive geographical locations such as India and China and developing the service offer in particular," said Stormont.

Annual revenue rose 2.8 percent to 336 million pounds and the company said May 24 that an overhaul will save 3.8 million pounds a year in costs. There are positive signs in markets and orders give the board confidence in Chloride's prospects, the London-based company said in a statement then.

Stormont said India's thriving economy and the nation's need for reliable power supplies will boost demand for Chloride's products, which include uninterruptible power supply systems that protect against outages.

Hermes holds the shares in funds including its Pan European Small Cap Companies Fund and its Hermes U.K. Smaller Companies Fund. He invests in U.K. stocks outside of the FTSE 100 index

[phillis] 24/5/2010 13:22

Money for old rope at this price
Just a matter of time now

[jugears] 20/5/2010 21:47

I thought Emerson were meeting Chlorides major share holders this week,has it happend yet? I think it was mentioned in the Gaurdian on the 4th of May.

[thorpematt] 20/5/2010 20:18

took off 50% I will hold the rest. The gravity of the general market is pulling it down IMO - nothing else. Having said that NO re-bid will pull it back to trend eventually (but that'll be up IMO).


BTW
I don't think we will double dip but I am cautious, so I am taking cash position higher across porfolio. Only holding stocks that have a lower chance of plunging into freefall - hard to choose which these are but in general think UK consumer descretionaries should be avoided (see clinton cards and will hills as sufferers)

[jimbo55] 20/5/2010 18:09

Sold out today. Think the likelihood is that Emerson will hang fire on following up their bid with the significant turn for the worst the markets have now taken.

I wasn't hedged, so decided to protect my gains. I feel/felt Chloride is over-valued at these levels, and only the bid prospect is supporting the price. It's been interesting watching the institutions adding to their hedges over the last few weeks.

Given the trickling down of the share price over the last four days, I suspect the prospect of a further bid is giving way to fear over one not turning up and an accompanying significant fall in the share price

I know when I'm pushing my luck! Now I've sold, a follow-up bid will probably appear in the morning. ;)

Good luck to all still in and holding out for more.

[jugears] 20/5/2010 15:22

Anyone still in?

[thorpematt] 13/5/2010 13:52

2 things to note from yesterday:
1. manufacturer's earning on rise
2. IBM announce $20bn pot reserve for takeovers...

no time to find links but both points are highly significant/ indicators as to why I will hold

[thorpematt] 12/5/2010 16:55

YES ! very important question indeed.

I think to answer it, we must consider the inverse part of the question: What offer would CHLD find "acceptable".

Then we have an interesting discussion.

My view:-

The market has already priced it higher, so the bid must be significantly higher again – as the board can point to the market valuation and say "not enough".

Emerson know this deal works for them. But this week's manufacturing figures look good so snapping up a bargain could become impossible if they wait too long...

[jugears] 10/5/2010 21:36

Any thoughts on what offer they may come back with,assuming they are still intersted.

[jugears] 10/5/2010 21:36

Any thoughts on what offer they may come back with,assuming they are still intersted.

[thorpematt] 10/5/2010 21:29

Agree, but of course it may be that waiting for the pound to fall is infact NOT so much "very soon" but infact "inevitable at some point in the not too distant future"

So therefore patience is required i.e. Emerson wait for the inevitable, we wait for the inevitable.

[jugears] 08/5/2010 13:32

With the pound falling against the Dollar, Doesnt this give Emmerson more money to spend? Imho we will see a revised bid very soon.