Alfred Mcalpine Share Discussion Threads

[ed 123] 02/8/2007 07:00

Thanks, VOLVO.

Yes, break up it is, then.

Should see a good uplift today, imho.

[volvo] 01/8/2007 11:39

Troubled McAlpine set for break-up
Ben Marlow, Mail on Sunday
8 July 2007, 10:15am
Troubled construction giant Alfred McAlpine has launched a review that could lead to a break-up of the £450m company.



BREAK-UP TALK: Scandal-hit Alfred McAlpine may be broken up



It is understood the firm has instructed adviser JPMorgan Cazenove to look at a range of options to improve returns for shareholders, including the sale of one or more of its four business divisions.
City sources say the disposal of the project services, infrastructure services or slate divisions is possible.

Management is said to be keen to keep the facilities management business, which accounts for about half of all profits.

The review has been prompted by the flagging share price, which despite the strong stock market is lower than a year ago. McAlpine has been hit by a number of problems, including fraud in one of its subsidiaries.

In February, the company, which has built about ten per cent of Britain's motorways, including the M6 toll road, delayed publication of its 2006 financial results after the discovery of gaping discrepancies in the accounts of its North Wales slate business, the largest provider of natural slate in the world.

The size of the fraud, which dated back several years, caused a massive accounting hole and a £23m hit to its profits for 2006, leaving them at about £19m.

This was followed by the dismissal of six executives, the resignation of group finance director Dominic Lavelle and finally a police inquiry.

The parent company, with almost 9,000 employees worldwide-was established in the Thirties as an offshoot of the famous company started by Sir Robert McAlpine, though there are no longer any family connections.

Alfred McAlpine's major construction projects in recent years include the world's biggest greenhouse, the Eden Project in Cornwall, and one of the oldest museums in the world, the Royal Armouries in Leeds.

The company declined to comment on talk of a break-up.

[volvo] 01/8/2007 10:07

Think a few of these would like some money back.


Major Shareholders Date Amount % Holding
Schroder Investment Management Limited 5/7/2007 13,451,209 13.13
Fidelity International Ltd 11/5/2007 5,689,539 5.55
New Star Asset Management Ltd 11/5/2007 5,160,248 5.04
Sparinvest Holdin A/S 21/6/2007 4,515,067 4.41
Legal & General Investment Management Ltd 11/5/2007 3,431,476 3.35
Standard Life Group 11/5/2007 3,203,719 3.13

[volvo] 01/8/2007 10:04

Ed I picked up a few in the confusion this morning.Think you may find that Morgans have been sounding out one or two people recently to see if there are buyers out there.As you rightly say there certainly is.The results tommorrow will hopefully update the shareholders.

[ed 123] 01/8/2007 08:43

Agree, the current management has been poor for shareholder value. The shareprice is well below that pertaining at the time the housing division was sold.

Slate apart, the divisions are performing well and their markets are strong. Imho, there would definitely be buyers for MCA if it were put up for sale. I'd prefer a sale of the whole, rather than just the slate division. The management may have been nudged by some of the major shareholders. Long-termers may want to exit, if they can get the right price.

[elmbury] 01/8/2007 08:34

The way this share has reacted to the general market sell-off suggests that no-one is wanting to sell this share at the moment as it is considered very much 'in play' for a take-over.

A good one for the Chinese to look at maybe.

[miamisteve] 30/7/2007 15:05

They don't need to break up the group, just get rid of the slate division. Hopefully they'll announced that with the results.

[shawzie] 30/7/2007 09:56

How can anyone believe that this is an "undervalued" company.
Perhaps a very highly "overvalued" company.
Over the past three years shareholder value has fallen, NAV has fallen,
intangibles (possibly almost worthless) are about 60% of shareholder value,
profits are meagre, mismanagement or perhaps "corruption" and overstated
profits at slate operation, etc.,etc.
If this is an undervalued group then the problem surely is to replace present
management. A breakup of the group would give value only to management.

[wad collector] 29/7/2007 21:24

I can hardly wait...

[ed 123] 29/7/2007 13:48

"Undervalued group is bouncing back" - FT

... might give some more uplift on Monday.

[ed 123] 28/7/2007 09:39

Up nicely yesterday despite market conditions, I wonder what Thursday will bring?

[miamisteve] 10/7/2007 17:27

As long as they have the slate division the share price will remained depressed. The problem is now is probably not the best time to offload it.

There is an interesting question over how much the slate division is worth. the markets have it valued at nothing, but the NAV of the landbank is immense.

[miamisteve] 09/7/2007 09:13

Wad - The company hasn't announced it yet ( just press article) so expect a second leg up when it does occur.

[bonzophil] 09/7/2007 08:55

If they dont do it themselves, then at these prices someone will do it for them.

[wad collector] 09/7/2007 08:47

I expected a larger rise in response to that statement , I guess the market has a certain sense of fatigue about MCA.

[miamisteve] 09/7/2007 08:37

A break up seems the logical step. Had been planning to offload as it seemed that the share price was going nowhere whilst the stigma of the slate debacle remained. bodes well for the short-medium term, judging by what happened at amec.

[ed 123] 04/7/2007 09:00

Thanks for the link, Howls.

As you expected, it has been set back this morning (down 7p).

The damage today was done by a broker that reduced its 18 month target price to 536p. That's still 22% above today's market price and it's still on that broker's buy list.

FWIW, I expect this to be a blip followed by a gradual medium term rise. The trading statement confirmed that the core businesses are going well.

[wad collector] 26/6/2007 20:26

Wouldn't buy a broker off you either, but suspect they will be having a sale soon.

[ed 123] 26/6/2007 13:40

Wouldn't sell you my trampoline, anyway! ;-)

In three minutes it went up 10p. To me, that's a strong bounce for MCA.

There should be some broker comment soon. Should be supportive, imho.

I know, I know ........ you wouldn't buy a support off me!

[wad collector] 26/6/2007 12:47

Up 5p at present - wouldn't buy a trampoline off you!

[ed 123] 26/6/2007 11:03

Good statement - no nasties.

Shareprice bouncing strongly.

[bonzophil] 26/6/2007 09:38

It looks more like a hunchback

[wad collector] 25/6/2007 18:01

If it goes down it might keep going down unless it goes up.And then it might keep going up .Unless it goes down..