Flowtech Fluidpower Share Discussion Threads

[mudbath] 18/6/2008 11:35

Like that information A LOT, eezvmt.Good investigation/knowledge.

[eezvmt] 18/6/2008 10:55

Cadence CEO Mike Fister is also on the board of directors of Autodesk. See

[mudbath] 18/6/2008 09:30

Cadence and Flomerics have already worked successfully together.I feel sure that whatever Cadence/Mentor evolves into,they will seek to have FLO on board.For me therefore the picture remains totally bullish.In any event,Mentor are not going to tear up their corporate strategy.Will they lapse their offer for FLO next week-or will it be increased to a level acceptable to shareholders?? Not long till we find out!!

[littlemadam] 18/6/2008 09:28

battlebus.... well done. an offer of $16 a share looks a good one to me and Ment will find it hard to refuse, despite their initial rejection.

[battlebus] 17/6/2008 18:48

Well the shares i bought in Mentor after the takeover approach proved timely.

[psolomons] 17/6/2008 18:09

Im not selling. It seems very likely Autodesk will still bid. They want FLO and know they have to offer more than 104p. Mentor tried at that price got nowhere. The take over of mentor may not happen either.

[littlemadam] 17/6/2008 17:18

bolt from the blue and I think the market will see it as negative as they do not like uncertainty, as we know. Not sure what to do here and i suspect many will bail out.

[varies] 17/6/2008 14:16

tonyx
Thanks so much for telling us this news about Cadence & Mentor Graphics.
If MG must now concentrate on defending itself, it may be disposed to sell its 30% stake in FLO especially if this can be done at a profit.
I suppose that on balance this is bad news insofar that there is less likely to be aa auction between Mentor and Autodesk. On the other hand AutoDesk might feel more inclined to bid for FLO if it can pocket Mentor's stake at the start.
I intend to stay on for the ride !

[bungler] 17/6/2008 13:18

Extraordinary news - that presumably takes Mentor out of the game then. Does it leave Autodesk with a clear run - and if so will they lower any potential offer in response?

[tonyx] 17/6/2008 12:42

Well if you were not confused before......


Cadence Design proposes to buy Mentor Graphics for $16 a share

NEW YORK (Thomson Financial) - Cadence Design Systems Inc. Tuesday said it
proposed to buy Mentor Graphics Corp. for $16 a share in cash.
The offer represents a 30% premium over Mentor Graphics' closing price
Monday of $12.33, Cadence said, and a 46% premium over Mentor's average closing
price in the past 30 trading days.
The transaction price represents a total value of $1.6 billion, reflecting
Mentor's net debt of $69 million.
Cadence made its offer public after Mentor declined to engage in meaningful
discussions about the buy-out proposal, Cadence said in a letter addressed to
Walden Rhines, chairman and chief executive of Mentor Graphics.
"We strongly believe that a combination of Cadence and Mentor Graphics will
create significant value for both companies' respective shareholders and
customers," the letter said. "We expect you and the Mentor Graphics board to
give this proposal serious consideration."
Cadence shares closed at $11.57 on Monday.
Christie Rizk
cr/jw

[mudbath] 17/6/2008 11:59

The first newsletter from the Nanopack consortium is now available.Link below.

[littlemadam] 16/6/2008 17:00

thanks boys.

[eezvmt] 16/6/2008 15:17

Ibex Management also bought 50,000 today (in addition to 50,000 last week) to get over 2%. Interesting...

[eezvmt] 16/6/2008 14:19

I think it means that Millennium Partners increased their stake to 1.18% by buying another 28,000 shares at 110p. Last week they bought 33,000 shares at the same price which got them to 1.06%.

Hopefully they know something we don't know...

[littlemadam] 16/6/2008 14:05

so what does today's RNS mean? I am always confused over such announcments. Anyone help?

[mudbath] 16/6/2008 10:50

So let us hope that the median enterpise value, as indicated by recent peer group transactions, provides the benchmark for the pricing of any future bid for FLO from Autodesk,Mentor,KKE etc.

[bungler] 16/6/2008 10:46

In fact if you look at the graph just below those figures in the defence document 4x actually looks rather conservative - in other words according to Flo the "correct" take-over price should be in excess of £2.50!

[eezvmt] 16/6/2008 10:42

the first four pages of the document are not numbered, hence page 3 can be found on electronic page 7 (in the pdf file).

btw, there is also a note in the (electronic) page 25 saying:

(b) The translation of the median enterprise/revenue multiple to a per share value of over £2.50 is
calculated by multiplying the value of the median enterprise value/revenue multiple of 4x by the
Flomerics revenue as of December 2007 and dividing the total number by the number of
outstanding Flomerics shares in issue at the date of this document, 22,863,045 as per Flomerics'
RNS announcement dated 13/05/08. This figure is higher than £2.50.

[bungler] 16/6/2008 10:07

eezvmt - thank you very much for that. I had completely missed it so am grateful to you. (Incidentally, if anyone else is trying to find it, for some reason I found is on page 7 of the defence document not page 3 but that may just be the formatting on my PC I suppose).

[eezvmt] 16/6/2008 09:16

bungler, see page 3, where it says:

"Recent deals in the CAD/CAE space imply a much higher
valuation

The median enterprise value / revenue multiple from comparable
peer group public and private transactions in the CAD/CAE
simulation market over the last 2 to 3 years is approximately 4x
which translates to a per share value for Flomerics comfortably over
£2.50"

[bungler] 15/6/2008 21:39

eezmt I didn't see that £2.50 price and can't find it on a cursory glance back through the news releases - would you mind pointing me in the direction of that figure please? Or maybe it was just a misprint - £1.50?

[eezvmt] 15/6/2008 18:38

It will be interesting to see how much Autodesk will offer. I think it will be nowhere near 2.50 which Flomerics board say (in their defence document) is a realistic price.

So if Autodesk offer something like 1.45 and Flomerics board recommends it, I wonder what spin they'll put on it.

[engineer66] 13/6/2008 16:11

It was a highly opportunistic bid! I had to laugh at 2.4% acceptances. At least, it focussed minds on creating some value.

[parvez] 13/6/2008 14:50

looks like fun in only just starting on FLO