|the 'new Detica' thread is here
|Looks like Tom Black is making a comeback|
|I sold my holding in the market today at a price that gave me the equivalent of the bid price of £4.40 pps so don't have any further pecuniary interest. The shares are also x-div. I am a little puzzled by the price remaining above the bid level as I have not heard any substantial rumours of a counter bid. A lot of my friends have held on - maybe I have sold too soon. Anyone out there have any comment on the current situation?|
|What a shame. A great operation extinguished - by a giant that will get just short term gains - reasons given above. Organisations like BAE and DCA are chalk and cheese. Even the statement effectively admits that BAE couldn't compete.
"The acquisition will assist BAE Systems to implement its strategy of progressing development of its security business in its home markets."
Anyway, I'm looking very closely at another technical outfit that has many of the same characteristics as the place to invest my DCA gains. Dominant in its field, providing near essential services, financially successful and growing. But I could be wrong, so I'll keep that to myself.|
|BAE Systems - proposed acquisition of Detica Group plc
28 July 2008
BAE Systems has today announced a recommended offer to acquire Detica Group plc (Detica), a provider of information management capabilities to the National Security and Resilience (NS&R) sector. The offer to acquire the entire issued share capital of Detica for 440pence per share in cash values the business at approximately £538 million including assumed net debt.
Links in the header|
|If the press etc is to be believed, the BAe approach was at 425p. Given the fall from over 400p now to below 380p, there seems to be significant uncertainty whether a BAe deal will go through or whether there will be a counter-offer.
As my post above, I think it will be a pity if BAe succeeds. Much of DCA's success is based on using only very good people, at high salaries compared with BAe, and Independence. Such characteristics do not survive inside large organisations.
I believe that BAe's primary motive is to destroy a rising outfit that is now well positioned in the US (no profits yet, but lots of contacts and reputation) and is being "awkward" for them in the market. Likely to be asked to work on the client side, to give independent assessments etc. and able to bring higher "thought-power" to bear!
The deal shouldn't be allowed, in the UK's national interest! BAe should have to face the competition and improve its game where necessary - use DCA where appropriate (as they may do anyway) - rather than take out one of our best and brightest!
By the way I have nothing to do with BAe or DCA. (Though I spent my career in that world). But having sold DCA, I'm now watching and hoping to buy back on the initial heavy fall if the deal collapses.|
|Thanks call-logger. Today seems to be continuing along the same lines.|
We're at the stage where the negotiations are running their course leaving us to wait for an announcement of the outcome.
The rule announcements are made while the share is in a bid situation and, I think, show all the transactions where over 1% of the company changes hands.
They are very boring.|
|Well, things seem to have stabilised now since the beginning of Tuesday. Being a rookie to this sort of thing I'm not sure what it all means. Are we in some kind of phoney war? And what do the continual rule related announcements mean?|
Well done - it's very rarely wrong to take a profit - I was tempted to do the same. I don't think that BAE Systems will have any problem with sensitive government contracts, after all, it probably one of the biggest suppliers of equipment to the MOD. However, a deal is not done until it is signed-off and a bird in the hand is worth two in the bush as the saying goes. I doubt that you will have an opportunity to get back in but good luck anyway.
|hallums, thank you, and it's good to have someone to say 'bye to! I sold both my tranches in the 390's this morning - made over 2x but disappointed.
I don't see how such an outfit can sit easily within a giant - unless BAE keep their distance they may find many people will walk. Doubtless the top brass will get golden handcuffs, but even so.... The top level contacts must be worth a lot - the actual contracts, not much to BAE.
I think there could be a case to prevent such takeovers in the national interest - a giant effectively eliminating something that could be a national asset.
Anyway I shall be watching carefully in case it doesn't happen and getting back in on the reaction!|
Rumour on the street is a bid from BAE Systems at £4.25 pps - nice for some of us and a big pick up from recent lows.|
|See the RNS issued at 1731 this eve - preliminary offer. EDIT: One of the Sundays suggests it is from BA Systems.
I'm really surprised to be the only one posting here. Great company and great shame if they get taken out at this stage. I had them as a 5 year hold for growth and some divs.|
|Only seen it in a Citywire summary but there is some sort of positive mention in Shares Mag today.|
|Markets are really vicious at the moment.
Keep you eye on BARC tomorrow. esp if they up the divvy.|
|markth, it seems you are attempting to suggest a cautious approach. I always take that view - and is why I sold most of mine before the fall, having paid attention to the same sort of - then negative - straws in the wind that I have been commenting on recently. (And aquisitions are nearly always bad news of course.)
But the acquisitions, market declines etc are now historic. My interest is in whether reinvesting is right - for the future. I've been putting a little back in gradually - looking ok so far - see the graph!|
|Well there y'go, the market and all the PIs are much better informed about DCA now, yes?|
|Main points today Good. See the full RNS.
15 February 2008
Interim Management Statement
Performance in the third quarter was in line with the Board's expectations.
Revenue in the nine months to 31 December 2007 grew by 31% compared with the
same nine-month period in 2006.
Our UK Government business continues to perform very well and the market remains
excellent............ growth in our UK Government business is
accelerating and we continue to recruit actively and to redeploy staff from
other parts of our business to satisfy demand.
In our US Government business, following our first half investment in
integration, we are seeing good progress. ............ our opportunity pipeline continues to strengthen.
Our Financial Services business is performing in line with the Board's
As expected, demand from the Investment Banking sub-sector remains subdued and this area of our business is trading in line with the expectations we established at our interim announcement in November 2007.
In Telecoms, Media and Technology, we have seen a good increase in demand in the second half of the financial year.
There have been no significant changes in the financial position of the Group.
Recent cash collection has been strong and Detica's balance sheet therefore
remains robust with net debt of £17.7m at 31 December 2007 (30 September 2007:
net debt of £25.2 million).
........ demand overall remains healthy, particularly in our Government markets. As a result, the outlook for the Group remains good and the Board's expectations for the current year remain unchanged.|
|Overcoming my hesitation to make a third sequential post here, and on a similar theme, I have come across an extract from the regular Irwin Steizer column in the Sun Times of I think about three weeks ago. In a general discussion on the US economy, he refers to a "huge increase in US defence spending".
If so, it can hardly do DCA any harm.|
|Re my comments above, I think I can fairly claim to be not unduly surprised at the RNS today. Bits below. Total to DCA will now exceed £75m over 4 to 5 years.
(Needless to say, I have only generally available knowledge!)
12 February 2008
Trusted Borders signs addendum with UK Home Office for e-Borders project
Trusted Borders, a consortium of companies led by Raytheon Systems Limited of
the UK, and including Detica, has signed an addendum to the contract originally
signed in November 2007 providing the Home Office with extended functionality
and services in respect of the nation's e-Borders programme, an advanced border
control and security programme.
Detica is responsible for the intelligence and analytics services in the
e-Borders programme. The value of this contract addendum to Detica is
approximately £25 million, the majority of which will be recognised over the
first four to five years of the contract.|
Yes, the historical angle is fairly clear and I noted and acted accordingly last year. But now the price is at a two year low and the forward view is all that matters.
Please stay in touch!|
|You must decide guys. Ask yourself why the share price is half what it was last Spring.|
|bluepill, he can't say anything blatant like that! We must be much more delicate in questions or probably get nowt.|
|does that mean you think they're wrong and its not a buy?|