Fiberweb Share Discussion Threads

[boonboon] 02/9/2013 10:06

that's what people must be banking on. As In the link I posted above this deal undervalues the compnay imo.

[kombimatec] 02/9/2013 09:59

Why are people buying above the offer price including the potential dividend? Is there another suter going to arrive with a better offer?????

[markyjacob123] 27/8/2013 12:26

Move on - look at LWB if you want to pay a decent price for quality

[boonboon] 26/8/2013 14:39

Fiberweb takeover attempt significantly undervalues the company

[topvest] 24/8/2013 18:11

I agree that the offer is not that appealing and may flush out another bidder. Management at Fiberweb have been disappointing though and seem to lack faith in the company's prospects, so I'm not surprised that they are happy to accept a short term mediocre return. Think they could have done better.

[markyjacob123] 23/8/2013 15:12

An interesting sector peer looking equally cheap is LWB

[meijiman] 22/8/2013 09:06

Well done Melody. I bt into Fiberweb on the back of an article in Shares magazine. Not my usual modus operandi. I was casting around for value and this seemed to stack up. Paid 80p. Have to agree with others that its a lowball offer.Kentz is more difficult to call. with this I think they will get taken out,so Hargreave Hale are on the right lines-IMHO.

[starsky75] 22/8/2013 01:20

I'm newish to all this but been dabbling for 2 years in shares, bought in here at 80p couple of months ago and will be holding

[melody9999] 21/8/2013 21:06

MM - I was equally fortunate to hold KENZ and FWEB. Sold KENZ at 595p as I thought upside limited even with another bidder - but still holding and waiting here.

[bearbully80] 21/8/2013 13:21

HARGREAVE HALE LIMITED (for Discretionary Clients) added more FWEB shares after yesterday's takeover announcement, some at 97.5p, and some even a little higher than PGI's offered price. Maybe somebody there (or their clients) believes the fat lady has only just started clearing her throat and that there is another twist.

On the other hand, it stayed below the offered price again today so people are selling at 92p (bird in the hand) rather than waiting a month to get 97.5p + 1.2p dividend. I suppose they are nervous that PGI could pull out. Very strange though, especially since, for the whole company, PGI have only proposed an offer of just over 50% of Fiberweb yearly sales revenues!

greg the grinch, so that probably means they would have made their move before now if at all interested in taking over such a relatively miniscule little company.

[greg the grinch] 21/8/2013 11:29

Fweb already have links to dupont.

[phoenix1234] 21/8/2013 10:56

Fiberweb plc - another to receive a takeover proposal

[meijiman] 21/8/2013 09:21

given Fiberweb's sales profile I think it more probable that a counter offer would come from another North American company. As for UK quoted it might have some interest for Low and Bonar.
I'm in the rather nice position of holding both Kentz and Fiberweb. im sticking with both of them -but can hardly argue with anyone who is tempted to sell in the market. Fiberweb seems to be a done deal its really about whether anyone else gets involved-let's hope so.

[bearbully80] 21/8/2013 07:45

PURE SPECULATION, JUST THINKING OUT LOUD - DO YOUR OWN RESEARCH!!!

People are asking "who are Fiberweb's competitors"? It's a tricky question because their business is quite diverse. But for sure there will be a few frantically bashing away at their calculators and measuring up with increased urgency now as, after years of opportunities and procrastination it's finally time to put up or shut up, thanks to PGI's opening offer.

This lot, have $10 BILLION revenue a QUARTER and make $4 BILLION PROFIT a year. They said a couple of weeks ago that focus is "on growth and development in agriculture and nutrition, advanced materials ...". Interesting, no?



A couple of months ago they sold Fiberweb a plot of land adjoining these two neighboring companys' bases (Old Hickory), for Fiberweb's big new warehouse (big enough for two?) so probably nothing interesting will happen if they didn't strike then, but the article above has the headline picture showing their own house-wrap product - the biggest competitor to Fiberweb's, so they could be a potential interested party. Of course this is all just speculation, but this seems to be one company that would be adversley affected if PGI becomes so powerful and especially when they could probably secure all of Fiberweb themselves for under 200m (117p share) which for a company that makes more than that in profit every month is not such a big deal.
It is disturbing that even 200m is only 65% of 1 year Fiberweb sales! Even with only 10% margins, which must be achievable for the right operator of the right scale Fiberweb would pay for itself fully in just 6 years, and give the buyer opportunities for other cost savings in their own operations, not to mention all Fiberweb's new R&D facilities, experienced, devoted and loyal personnel and products and patents and all the state-of-the art equipment they have been spending a fortune on over recent years, and, the interesting developments and presence in India! And, don't forget the name, Fiberweb is probably the most respected in its field.
Paul and others, please feel free to correct any bad assumptions. Who else could benefit from snapping Fiberweb, especially so cheaply at under 65% of 1 years sales revenue?

[welsheagle] 20/8/2013 21:13

Thanks, Paulypilot

[connor23] 20/8/2013 13:28

Agree with all that PP. I am happy to hold for now. I suspect the deal with PGI will go through though. Not sure how many competing offers we would likely attract, but we shall see.

Bit of a shame as this was a nice solid hold while their end mkts recovered over the course of next 12-18 months. Mustn't grumble though.

[it_trader] 20/8/2013 10:20

Nice one pauly.

[paulypilot] 20/8/2013 10:07

Hi,

OK I've been on the phone making enquiries, and this is the situation:

Company now sees itself as being "in play". So anyone interested in bidding for the company now needs to get on with it, and knows what price they have to beat.
Also, it sets the clock ticking re the PGI potential bid, as they now have 28 days to act.

So it's not a done deal yet, and there is potential upside from a competing offer, should any other party decide to throw their hat into the ring.

In my opinion, given that the PGI offer is far from generous, I think there is upside both from a competing bid, and from (long term) the company remaining independent. If the bid falls away, the share price would probably drop about 10p to say 84p, and it's good value at that level on fundamentals. Give it a year, and the share price would possibly have recovered to 120p+ on improving Western economies.

It's a straightforward cyclical business, so it seems pretty bonkers to sell out near the bottom of the cycle, at a low valuation!

I'm sitting tight.

Cheers, Paul.

[greg the grinch] 20/8/2013 09:51

Shares mag laughably mentions "Key to the bid proposal is that shareholders will still get the 1.2p dividend declared at the half-year results."

What a tit.... is an extra 1.2p enough to make this a great offer when turnover is £300m and should be rising and they look like they are on target to get a 10% margin.

This would have hit £2 medium term.

I fear its a done deal. Directors will be looked after by new owners with a favorable pay/severance.

Our only hope is it flushes out a new bid.

[angela10] 20/8/2013 09:32

Just seen level2 , not many buyers ,so sold the stock , nice little earner for a few days work. Watching market now .took a lot off the table,waiting till market settles

[bearbully80] 20/8/2013 09:18

Who are other potential bidders?
Are there any, even?

Paul, I agree that PGI's bid is tight, nice write-up again.

Why would anybody sell today, especially even below 98.7p, and more because the stock looks worth more just on fundamentals (300m sales, improving margins, 20m cash in the bank, good prospects especially as important markets USA, UK, Germany, seem to have started recovery)?

I suppose it is the old FUD thing in case PGI pull out.

[it_trader] 20/8/2013 09:12

They will drop a little Angela, but this is a good company and would soon regain the loss anyway.

It's all about your timescales, experiences, risk aversion and investing style I suppose. I agree with paulypilot, but still made a different decision for instance.

It's just such a poor offer and not sure why it has been approved. Yes there may be a better counter offer, or yes this may fall through, but that's the risk I didn't want to take 'on this occasion' and took my quick profit to move on.

[angela10] 20/8/2013 08:57

Being in this share since last week , making a lovely profit at the present , but if they don't take the offer will the shares tank.

[dell1234] 20/8/2013 08:35

Article on Shares' website about the approach - interesting analyst comment

[paulypilot] 20/8/2013 08:23

Morning,

For anyone interested I give my thoughts on the mooted 97.5p offer for Fiberweb here in my morning report. Personally I'm sitting tight, as I think this offer undervalues the company, which has good cyclical upside potential:

Rgeards, Paul.