Colliers Intl Share Discussion Threads

[rsouler] 26/1/2012 12:26

There will be counterbidders. They are just waiting to see the FS bid.

There won't be any increase in salaries - the accounts imply wages are already bloated. FS will likely chop a lot of jobs and sack most/all of the BOD. I don't think they'll tolerate them should they get control. They'll probably promise them the world, but if it comes to it, they'll boot them all out, imo. A new bidder (especially a currently unlisted one, looking for a kind of RTO) would probably leave more of the BOD and staff in place than FS would.

This could be very interesting over the next week or two, so I'm adding at these ridiculous levels.

imo.

[wakeland] 26/1/2012 12:08

Trading update is required, the BOD seem to be only interested in handing over to First Service, no doubt for a fat increase in salary!
Situation should be put out into the open to at least see if they can flush out a counter bid, BOD seem to be working against the shareholding majority in favour of the minority.

[rsouler] 26/1/2012 11:54

Also, on a technical note, if there are some big short positions here they will need to jump ship soon (ie. buy and buy big).
IMO.

[scburbs] 26/1/2012 10:53

Horrell's joining interview lays his cards on the table as to the interaction with First Service. He is convinced First Service want to put wherewithal behind the UK business and, therefore, he is following an expansion plan with a long term payback.

Well they have indicated that they have no intention of putting their wherewithal behind the business without first taking out 70% of the shares on the cheap!

His strategy of long term expansion without the financing to support it always looking exceptional risky.

The other obvious question is why was he working up a strategy and then communicating it for approval to a 29.99% minority shareholder? This being the very flawed strategy which is now allowing First Service to buy Colliers on the cheap! This is a strategy which destroys short term value and enhances long term value, but without a strategy to ensure short term survival without First Service! I suspect they approved of that strategy when it was presented to them and are now set to reap the rewards of Horrell's lack of understanding of the financial demands of his strategy!

"Mr Horrell is confident that FirstService will invest in the UK business, although he refuses to be drawn on the form this could take, or sums it could involve. "They want to put wherewithal behind the UK business, and I'm convinced of that. I wouldn't be here otherwise,"

...

Nevertheless, he will spend his first 90 days as chief executive scrutinising the group's 13 UK and Irish offices. "I will ask questions, poke, prod, look and listen, which will enable me to come up with a simple, motivational business plan setting out what we're going to focus on going forwards," he says. "I'll communicate it to them [FirstService] and see if they like the idea."

...

Mr Horrell says. "We've got to make sure we can compete against other agents, and acquire a few teams if necessary. We need to invest for the future, although the payback may be more than 12 months away.""

[themoocha] 26/1/2012 10:14

Loverat - Do you think it will coem out in the wash. I feel it will be swept under the carpet and Colliers will try and state that the offer is the best shareholders can expect at this time. Trading update is still being kept back so makes me think things might not be as straightforward as you state. JMHO.

TM

[loverat] 26/1/2012 06:47

Will be fascinating to see what unfolds here. What's the bet it will be Colliers announcing the low ball offer is in the interests of shareholders to accept in light of the groups debt etc.

As I see it Horrell has a predicament here if that's his plan. If the financial statements are resonable (despite the debt) and the bank supportive, he will be perceived as being in cahoots with First Service all along to stitch up the majority shareholders. People will ask why he did not negotiate facilities with the bank earlier when the share price was falling to avoid being at the mercy of a carpet bagger like First Service. This could open him up to charges of dereliction of duty and gross incompetance at the very least.

Either that, if they come out with such a statement and they are really in dire straights, then questions will be asked as to why no indication along these lines was revealed earlier via RNS.

First Service seem to have learned from the DTZ episode. However, that is different in the sense that there was no prior indication that the shares were of 'little value' as First Service now seem to be saying. It will be embarrassing if Colliers come out and say the same now.

Someone I feel has been very naughty and all will come out in the wash in due course.

[rsouler] 25/1/2012 16:06

Feel sorry for those who bought last January or before.

[smcl] 25/1/2012 15:56

Was thinking of buying yesterday...... thanks be to %$£$% I avoided

GLA

[loverat] 25/1/2012 15:48

RSouler - I reckon we could club together and buy them.

Regarding Estate Agents I have generally had a good experience on an individual level - albeit I have found them a bit slimey. Solicitors and AIM directors normally start me off on a rant. But this lot have alot of explaining to do soon.

[rsouler] 25/1/2012 15:40

I suppose all this just supports the animosity there is generally towards estate agents. They are clearly without scruples on every level.
We could probably all club together and buy this lot ourselves for £1m. LOL.

[rsouler] 25/1/2012 11:58

Obviously they (FirstService) have highlighted the negatives, with words like significant and no value. Not sure of the timing of the FS statement. A few percentage points at this level seems irrelevant in view of the amounts shareholders have already lost, even those buying in over the last 5/6 months. I guess most holders have written off everything already. IMO.

[gerryjames] 25/1/2012 10:55

I used an Irish branch a while ago and was impressed by the professionalism. They seem to be the only agents doing any business at the moment as they work directly with the banks, there's a lot of bottom fishing in property.

[loverat] 25/1/2012 10:50

Possibly - H2 - up to Dec 11 - should have been in line. After all they would have reported otherwise. They have recruited alot and taken on a lot of new work in H2. So I wonder if they are just biding their time a little and subsequently put out a forward looking atatement with alot of negative spin.

If the results are reasonable and going into this year has been O.K I would imagine it would be an embarrassment to release them. That would clearly confirm that this is a stitch up of epic proportions.

The last broker note states that COL have a supportive bank. I wonder what would happen if COL told First Service to get stuffed. First Service clearly want this company to expand and ease their operations in London and Europe.
That should not be under estimated. They are using the excuse of some debt (not huge) and the share price crash to thieve the company. If COL reject the offer who says they cannot continue independently? Maybe not in the long run - but if they do hit trouble because FS cut them adrift and buy them from administration, the fall out will be huge. A massive dent in the reputation of the brand and First Service. First Service will be buying faulty goods and in this business reputation is everything - particularly in these times. I know a little about reputation management.

Rejecting this offer is the only way too that Horrell can save his reputation IMO. Likely to become very messy.

[gerryjames] 25/1/2012 10:35

Holding back a trading report which may embarrass the company into rejecting an offer in this range? 0-.75


The unlucky gambler's 5 minute assessment.

[loverat] 25/1/2012 09:43

Sadly, Collier's remit seems to have been to act in the interests of one shareholder. The share price fall from 16.75p (Jan 11) to 0.5p a year later together with the latest announcements confirm that.

There has been no news in the last year to cause such a fall, save the odd statement about trading which was does not seem that bad and the revision of forecasts caused by deliberate expansion - presumably supported by First Service. Of course there was the DTZ issue but seems likely that someone was shorting these. (who I wonder)

This is a scandal of epic proportions and is going to make a great story when it's published and will raise awareness of this type of thing. It is such a shame that PI's have yet again been fleeced by a bunch of greedy crooks.

[wakeland] 25/1/2012 09:35

where is the trading statement, did this company achieve break even for h2?
if not why wasn't a guidance rns issued at the appropriate time?
without guidance how are other potential buyers expected to know what is happening at this Co? First service have inside info, a man on the board, and it looks like the board have been acting solely for First service's interest's ever since they came on board. Their remit is to act in the interest's of shareholders, not one shareholder.

[gerryjames] 25/1/2012 09:34

I only jumped in for a quick punt two days ago........4 grand later. Still better than death by a thousand cuts and it's still trading.

Good luck.

[loverat] 25/1/2012 09:09

M

Alot of people have mentioned that. I think he was encouraged to expand and they planned to pull the rug at a stage where the share price had been systematically trashed. He was probably encouraged by promises of funding etc. Either that he was part of this scam.

Either a fool or the willing getaway driver for these crooks.

Be interesting to see which one applies. Perhaps even both.

[mathisvale] 25/1/2012 09:05

Another RNS to encourage shareholders to sell, and I suspect that FirstService will be hoovering up as they do.

Ritblat has been very quiet with no advice to shareholders. I wonder what his position is in this sordid affair.

It would not surprise me to learn that Mr Horrell has been duped here - being taken on to act as a patsy and to shoulder the blame for failure. It has always surprised me that he chose to expand the company when every other company was cutting back. He must have had some encouragement to do this from higher up.

The whole situation stinks