Hollywood Media Share Discussion Threads

[matto] 10/7/2003 14:06

That's mostly because you can definitely get 25p from HC Group for the shares. However, if it becomes clear that Deutsche want more, this may rise more (although probably only slightly). Of course you have to remember the shares delist at the beginning of August.

[hotfinance14] 10/7/2003 13:48

Great post.......the share price has gone up to 25.25p...interesting!!!!!!!

[esmerelda] 10/7/2003 12:09

FWIW here's my 10p worth on the options left open to those that still hold (including you Hot!). Lets assume Deutsche Bank have been buying shares at or near the bid price then the most likely scenario is that they are attempting to build a stake to prevent a compulsory purchase of shares which would occur once 90% acceptances are achieved (whenever that is). They did the same at Fitness First but in that case (I believe) had over 10% in their own right so whilst those shares may one day be delisted any shareholders who have not accepted that offer will retain a partial ownership of the company. Companies such as Bridgepoint are not long term owners. Their role is to put in sufficient finance to get the company back on its feet and in two/three years time apply to have it relisted (such as what is happening now with YELL [Yellow Pages]) or sell it privately to another company, listed or not, and of course at a profit! With Fitness First Deutsche Bank have decided that whatever the outcome is then they will benefit from retaining 10% of the existing company and are prepared to wait to see what that outcome will be. Holmes Place is a harder one to call because it relies on another 5% of the existing shareholders refusing to accept the offer, not necessarily an unreasonable assumption but a close call anyway as pressure will be brought to bear on those who do not accept through letters/phone calls that may sound threatening but in reality are not necessarily so.

So what happens if you hold on? Well, and this is MHO as I have never actually done this, the company will be run by Bridgepoint for at least a year at which point they may choose to offer you a higher sum for your shares. Now that they only have to buy a few more they may be a little more generous (but remember they only need 90% to buy up the rest of the shares at whatever price they offer). Nothing will happen for a year as, I believe, a better offer in that timespan would contravene the Takeover Panel rules.

If they choose not to make an offer to existing shareholders then your next exit point will be when they sell the company on to another or seek to have it relisted. Because of the nature of this takeover, with its option to retain a small stake in the ongoing company, it is difficult for me to assess the relative benefits between being an original shareholder or one that has accepted the non-cash offer but if Deutsche Bank continue to hold their stake then you may conclude that they expect to be better off for hanging on.

The problem for a private investor is that your investment is 'dead' money until Bridgepoint decide to dispose of the company (I don't expect they will pay a dividend to continuing shareholders in that time as it would not be tax efficient to do so). That won't bother a Bank but if your life savings (as mine were) are tied up for two+ years then you may wish to exit now.

Good luck with whatever you decide to do.
Es

[hotfinance14] 09/7/2003 20:08

Bridgepoint told me about a possible compulsary purchase.

Is it too late for Deutsce bank to buy big and stop the offer ?

[matto] 09/7/2003 17:35

esmerelda is correct I believe.

They cannot compulsorarily purchase shares. They can however delist them.

[esmerelda] 09/7/2003 17:33

I think it is purely down to timing Hot. Once they had acceptances over 50% then they could have called it unconditional but then they would have to start sending out the cheques to those that had accepted two weeks later. By stringing it along towards the end of the 60 day deadline they keep their money in the bank for a bit longer. All MHO of course.

[hotfinance14] 09/7/2003 17:00

I am informed the offer is now accepted and that if forms are not filled to sell the shares Holmes may make a compulsary purchase of the shares.

Any one got any good news ?

I can't see why 77.2% makes the offer accepeted but 76% does not.

[matto] 09/7/2003 10:22

Looks like I was wrong then.

Now what to do ??????

[hotfinance14] 09/7/2003 10:22

Announced today ?




I think are only hope now is if Deutche Bank by more shares.It looks like 75% has been enough for the bid to go through.....should it not be 90%?

[matto] 08/7/2003 17:19

No I don't think we've stopped the bid. What we have stopped is them achieving 90%. I think the offer will be extended another week and then declared unconditional. My feeling is that they will not pass up this opportunity to acquire 75% of the shares at such a low price.

I'm more undecided now about whether or not to hold on to my shares if the delisting goes ahead. Previously I had thought I would sell them rather than hold.

[hotfinance14] 08/7/2003 14:39

Matto...so you think we have stopped the bid.What do you think will haoppen on friday.Increased bid or withdrawal or taking option to extend offer to another week ?

[matto] 08/7/2003 10:42

Well Deutsche probably aren't too bothered if the shares become unlisted (or not). They must reckon that 25p is a good price to pay and it doesn't look like they'll be forced to sell out to HC at 25p (which would require 90% acceptance of the offer). They don't have a large enough holding to really spoil HC plans - that (the spoiling) has been taken care of already.

[hotfinance14] 07/7/2003 20:38

Ok so they have added one million.What is that telling us ? Are they blocking the bid like they did with Fitness First ?

[matto] 07/7/2003 17:44

Yep. Added a million (very roughly)

[hotfinance14] 07/7/2003 17:15

This disclosure today

:

I think they have increased there holding.Will look into this.

[matto] 07/7/2003 14:31

Here's the deal with increased offers. They cannot be made within the last two weeks of the 60 day period. i.e. the latest date for an increased offer is day 46 after the original date of the offer. I believe tomorrow is day 46 (but I could well be a day out).

[matto] 07/7/2003 14:22

They have upto 60 days from the original date of the offer (22 May) which would allow them to extend the offer periof for another 7 days from this Thursday. I'm not quite sure what happens if the raise the bid whether this 60 day period starts again or what - I'll look into it. Once the 60 days are up they may still declare the bid unconditional at less than 90% acceptance or they may withdraw their offer.

[hotfinance14] 07/7/2003 13:52

The next 7 day open period ends 3pm this thursday and i beleive this is the last one.What happens then..is it either a higher bid is put in or the offer is cancelled.

The share has gone up .25p today.Offer price is now more than the purchase bid price.

If the bid is cancelled then back to normal business with an AGM at the end of month.

Fill in that Proxy form....and vote Fisher OFF.

[hotfinance14] 07/7/2003 10:47

Here here peteh1!!!!!!!!

[peteh1] 06/7/2003 00:48

I have to agree with the above posts.I will also not be selling until I have to and hope that other shareholders will respond by withdrawing their acceptance of this derisory offer.Will sit on this stock for years if necessary rather than see the management get away with this sham.An increased offer,then things may be different.

[insiderboy] 04/7/2003 16:02

HOT

i lost a small amount........hardly worth putting it on paper, but have certainly made up for it....

CST up 21% today
NSB up 'another' 9% today
HAR................waiting in the wings to rocket.....AGAIN!!!

Open a tinnie mate............i'm gettin kinda firsty!!!!!

[zynks] 04/7/2003 15:22

Matto, let's hope your assessment is right.

I have been told that only UK based shareholders can vote, so all I can do is hope there are enough people with the patience to wait...

I for one will only sell if I have no choice.

[insiderboy] 04/7/2003 11:03

matto

good imfo
Bailed out of these 2 weeks ago.....no loss but no gains either!

Hope you're right and all those who have waited anxiously are rewarded!

[matto] 04/7/2003 10:56

I didn't expect them to extend the offer further. They must reckon 76% isn't enough. Maybe they'll up the offer if there's no further take up.

I believe it is now possible for anyone who wants to withdraw their acceptance to do so. This should include nominee holders but quite what the response of the nominees will be I don't know. Quote Rule 34 of the City Code on Takeovers and Mergers. (This should not be taken as advice. DYOR.)

RULE 34. RIGHT OF WITHDRAWAL
An acceptor must be entitled to withdraw his acceptance from the date which is 21 days after the first closing date of the initial offer, if the offer has not by such date become or been declared unconditional as to acceptances. This entitlement to withdraw must be exercisable until the earlier of (a) the time that the offer becomes or is declared unconditional as to acceptances and (b) the final time for lodgement of acceptances which can be taken into account in accordance with Rule 31.6.