Eidos Share Discussion Threads

[damac] 12/2/2009 11:22

Togglebrush - 12 Feb'09 - 11:07 - 870 of 870

f) On 15th December Time Warner estimated cost of shares

__________Price__Shares_______Cost_________Note

Original__5.02___8,860,897____£44,481,703__Known
Rights____0.35__23,571,427_____£8,249,999__Known
Oct-08____0.30__10,085,756_____£3,025,727__Guess Price
Dec-08____0.20__10,000,000_____£2,000,000__Guess Price

Current Holding_52,518,080____£57,757,429

Estimated Average cost of shares is £1.10p


So that would mean that if TW accepted the offer without putting in a counter offer it would effectively represent a £41M (ish) loss, yeah?

[togglebrush] 12/2/2009 11:07

This is from my 16 Jan 09 shareholders notes:-

a) From the Annual Report

On 26 September 2008 the Company had been notified of the following interests in the ordinary share capital of the Company:
________________________________Number___ %
Time Warner Entertainment Ltd 37,518,080 14.23
Thorson Investments Ltd*_____ 25,335,804 9.61
Deutsche Bank AG_____________ 23,841,568 9.05
Cazenove Capital Management___12,515,783 4.75
ING Bank NV___________________11,454,648 4.35
Legal & General Investment____10,089,628 3.83
Pioneer Investments____________9,148,355 3.47

The directors who held office at 30 June 2008 had the following interests in the shares of the Company:
___________30 June 2008 30 June 2007
_________________Number Number
Tim Ryan________ 81,488 43,141
Nigel Wayne______21,110 11,176
Don Johnston____ 41,555 22,000

Modified since

b) October 08 Icelandic Banks collapse. Mr Tchenguiz (Thorson Investments) retains 13 million and 5% of the company. 45 million of his shares held in CFD's are overhanging the market. Some of these found homes with:-
14 Oct 08 Cazenove Capital Management Limited was 12,515,783 now 15,515,783
16 Oct Time Warner Entertainment Ltd was 37,518,080 now 42,518,080
Other RNS's were I assumed holders of shares of banks holding the backing of these CFDs. Share price at this time was around 20p. This accounts for roughly 7 million shares. A balance of 35 million or more shares cause a overhang in the market

c) November 08
4 Nov 08 Deutche Bank was 9,270,054 now 13,675,027 5.18%
16 Nov Cazenove Capital Management Limited was 15,590,783 now 12,062,783 4.58%

d) December 08
15 Dec Time Warner Entertainment Ltd was 42,518,080 now 52,518,080 19.92%

e) Jane Cavanagh (ex CEO) was in the past holder of a large tranche (5.5%) and took up the rights issue but then split her holdings (Jane Cavanagh and Finn-Kelcey & Chapman Trustees Ltd ... now 9,634,037) with her family trusts with each below 3%.

f) On 15th December Time Warner estimated cost of shares

__________Price__Shares_______Cost_________Note

Original__5.02___8,860,897____£44,481,703__Known
Rights____0.35__23,571,427_____£8,249,999__Known
Oct-08____0.30__10,085,756_____£3,025,727__Guess Price
Dec-08____0.20__10,000,000_____£2,000,000__Guess Price

Current Holding_52,518,080____£57,757,429

Estimated Average cost of shares is £1.10p

g) There was a potential overhang of some 25 million shares in the market before the last 10 days activities.

h) Phil Rogers, current CEO, bought 60,000 22 Sept 08 when share price was about 31.0p (he paid 31.5p)

i) There are 263,586,730 shares in issue.
ii) May 08 rights issue 8 for 9 at 35p

E&OE

[a44] 12/2/2009 11:03

I am sold up guys, good luck to all those I discussed with. Dealy I like it when we tie up another one we both called, see you again hopefully in virtual BB space!

The Crypt, I serious hope you never sold out yesterday as you claimed, as I can not think of a person that deserved this rise more than you.

For note for those that can be bother read all my post on here and see what it told you!

Good luck all

[damac] 12/2/2009 10:44

Does anyone have a list of the current major shareholders and their percentage held?

[frankyness] 12/2/2009 10:03

Can anyone confirm GNMartin's claim that WB do not have to vote in favour of the bid as it is crucial to the risk in selling now or waiting to see if TW might make a higher offer?

If TW is contractually obliged to make an irrevocable undertaking to accept the bid UNLESS they make a higher offer that is great.

However GNMartin, I don't understand how they can vote against a bid that they have to make an irrevocable undertaking to accept?

Anyone shed any light? Based on the shareprice, the market appears to think its the first option.

[togglebrush] 12/2/2009 09:57

Extracts

"Insight Investment Management and Cazenove Capital Management Ltd. have irrevocably undertaken to vote in ...their aggregate holding of 34,225,256 Eidos Shares representing approximately 13 per cent. of the existing issued share...These undertakings will also cease to have effect in the event of a higher competing offer which exceeds the Offer by at least 15 per cent."

So a third party bid must be over 36.8p ... (and over 35p RI price)

"Pursuant to the Subscription Agreement, Warner Bros Entertainment Inc. has agreed that ... to vote those shares in favour of a scheme of arrangement (or takeover offer as the case may be). Such undertaking will lapse in the event of an announcement of a higher offer made by Warner Bros Entertainment Inc. or a member of its group or a third party announcing a recommended higher offer."

Warner Bros can still bid.

[nod] 12/2/2009 09:57

another one bites the dust. who would have sold for 32p a year ago?
and as for two years ago...

[kooba] 12/2/2009 09:53

got 25/- this morning at 15p...early bird and all that...news was out on dj newswires before rns by eidos as the japanese had announced early.eidos true to form goes out on a controversial note!!
anyone worked out the tw position does appear as gnnm points out as its a scheme of arangement that tw could refuse to accept.alternatively with eidos showing they have a fully funded offer on the table it could be a put up or shut up to tw to top it.

[darrens] 12/2/2009 09:39

Blimey - just goes to show bid situations are a lottery because I never expected them to get 30p+ for the company.

Well done to the Board for salvaging something for the shareholders and well done to all the shareholders who stayed long - drinks on you!

[togglebrush] 12/2/2009 09:32

Trading Volume over 6 million and share price within 5% of the Take over price. It looks like the City believe there is life in this company yet.

Daily Trading Volumes Quartiles since the Rights Issue
Since 27 May 2008

Max 18,567,286 ____ 1st September 2008
Q3_____574,802
Med____276,268 ____ Middle of sorted sample
Q1+____144,077
Min________630 ____ 13th November

[gnnmartin] 12/2/2009 09:11

It's interesting that the RNS says "Warner Bros Entertainment Inc. is contractually obliged under a Subscription Agreement with Eidos to provide an irrevocable undertaking ..." rather than Warner Bros Entertainment have provided an irrevocable undertaking .... That suggests they did not actually consult Warner. I see a possible downside to my small purchase: if Warner vote against the scheme, they have almost a large enough share holding to sink the scheme on their own. If they don't want to bid, but don't want Eidos to go to anyone else, they can spike this bid.
Nigel Martin

[peterbill] 12/2/2009 08:59

bethany ... Only the holdings of current management are legally binding regardless of any higher offer ... what does that mean, exactly?

Won't it come to a bidding war between TW and SQEX ?

Looking at 35p at least ... :-)

[gnnmartin] 12/2/2009 08:47

Gosh. A good result.

I've bought a few at 30.75, hoping I'll at least get my money back with the small possibility that there is a competing bid.
Nigel Martin

[bethany3] 12/2/2009 08:45

TW are not obliged to legally tender their shares if TW or any of their subsidiaries make a higher recommended offer. Only the holdings of current management are legally binding regardless of any higher offer. Is it a done deal, maybe not!

[kooba] 12/2/2009 08:38

darrens think thats a breakout!

[dealy] 12/2/2009 08:37

It says in the announcement that they are legally obliged to tender their shares. I assume though they are allowed to make a counter-offer.

[pete1973g] 12/2/2009 08:36

Can TW block this bid?

[dealy] 12/2/2009 08:26

Well done to those who held out (although few shareholders actually benefit here - except the ones that picked up shares in recent weeks).

32p is a good offer in this market. What will TW do now though and will their be other bids?

[togglebrush] 12/2/2009 08:26

Rights Issue on 19th May was at 35p. All Long Term holders are therefore liable to be losers... Robert T, Jane C ... etc

Even after averaging down my average is 48p

[papaduke] 12/2/2009 08:25

well done all holders.

nice to see folk making money.

put it into AFR!!!.

well done

[amt] 12/2/2009 08:18

Well thats a fantastic offer and I will certainly take that.

[ahernsv] 12/2/2009 08:16

32p ps bid from Square

[pete1973g] 12/2/2009 08:13

anyone know what's happening? glad i held

[dealy] 12/2/2009 08:12

what's going on?