ARM Holdings Share Discussion Threads

[qantas] 19/7/2016 07:26

This is the first after Brexit of many British to be sold we are so cheap now with the devalued pound. So many takeover targets in the pipe line....

[retailronnie] 19/7/2016 07:00

What do you mean? I can't find anything to say that May is going to block the deal. Suggest you add a source or remove the post which is misleading.

[pillow] 19/7/2016 00:44

MAY to block deal !!

[philanderer] 18/7/2016 18:22

Well done lucas :-)

[lucas5950] 18/7/2016 18:03

As did i Phil. What a great start to the summer!

[deltar] 18/7/2016 17:31

Sold 50% as a hedge.

[philanderer] 18/7/2016 16:52

Sold out just before the close. Almost 90% profit and chuffed to bits :-)

Luck to all.

[only who?] 18/7/2016 14:33

Some of these analysts should be charged with fraud.

[smerch1468] 18/7/2016 14:25

What a fickle bunch Liberium are. I will never take any of their share ratings seriously again.

[meijiman] 18/7/2016 13:48

Ft suggest analyst was Eoin Lambe-what an utter fool.

[philanderer] 18/7/2016 13:44

Bloomberg video:

[philanderer] 18/7/2016 12:39

City Index:

Chip designer ARM Holdings has agreed to be bought by Japan’s SoftBank for about $32bn.

The offer in sterling equates to £17, in cash, per share—a premium of 43% to ARM’s closing price on Friday.

The news sent the stock as much as 47.3% higher on Monday, signalling that most investors see a good chance that the deal will take place.

Reports this morning have been incrementally removing the most obvious remaining potential impediments, such as public interest grounds.

We do not think it likely that the offer will invoke more than routine scrutiny from the Competition and Markets Authority (CMA).

The latest ‘public interest’ guidance to Parliament backed by the CMA (January 2015) defines strategic, competition, and security concerns clearly.

There is little public evidence that ARM can be deemed to be a ‘sensitive’ company in any of the above ways.

We note Prime Minister Theresa May and Chancellor of the Exchequer Philip Hammond were briefed about the offer over the weekend.

That leaves the main risk to the deal a potential counterbid, by a more integrated chip sector player such as Intel and Samsung.

Both firms are in more favourable positions in their cash flow cycles than acquisitive Softbank. It is the most leveraged with c. $88bn net debt after purchasing loss-making Sprint for $22.2bn in 2013.

Intel might be motivated to make a counter offer by its notable failure to penetrate deeply into the mobile components space.

Samsung might spy an opportunity to synergise and expand its own chip manufacturing business.

Both would, like SoftBank, be mindful of how rare the current steep discount on British companies will turn out to be, following the pound’s fall to 30-year lows.

However Samsung, Intel and even slightly lesser rivals like Qualcomm, would also face tougher global competition scrutiny than SoftBank.

The almost 54 times operating profit value of SoftBank’s offer would already be a big ask for Intel and Samsung shareholder

As for traders who were not holders of ARM shares before Friday’s close, the risk-reward balance now depends mostly on the probability that Softbank’s bid might fail.

We do not see much chance of that right now, though the huge gap between Friday’s closing price and Monday’s lows might tempt.

Certain details of the takeover situation still bear some confirmation and that may make the 60 pence range between ARM’s highs and lows so far on Monday attractive to shorter term traders.

[philanderer] 18/7/2016 12:31

More brokers...

Analysts felt the deal is likely to go through given there is no existing conflict of interest for SoftBank in ARM's markets, with Berenberg saying a counterbid is "unlikely".

JP Morgan Cazenove refused to rule this out, however: "We believe this was an unsolicited bid for the company so we do not think the company has not been 'shopped' to other potential bidders meaning that if an independent bidder such as Softbank with a higher bid showed interest, the board could change its opinion. On the other hand we do not believe tech industry companies such as Intel, Apple are likely bidders because their bids create conflicts of interest as competitors (regulatory issues) and customers (to the business model)."

Kepler Cheuvreux recommended ARM Holdings shareholders accept the "generous" offer: "Even though a share price of 1,700p might have become reachable on a stand-alone basis, it likely would have taken ARM Holdings shares several years and required a lot of patience from investors."

[philanderer] 18/7/2016 12:11

LOL - Liberum.. and they`ve changed their analyst !

'We, therefore, upgrade the stock to a Hold from a Sell, raising our price target to 1700p (from 650p). Our price target equals the acquisition price by Softbank. The change of recommendation also coincides with a change of analyst coverage.'



Neil Campling of Nothern Trust speculating Qualcomm or Intel could also bid yet.

(same link, with a lot of comment)

[underhill] 18/7/2016 11:35

Selling England by the pound

[only who?] 18/7/2016 11:32

Hold out for the £25 Microsoft bid, followed by the £30 Apple bid!

[safman] 18/7/2016 11:00

Very exciting..



What is says about the IoT market..and where it thinks this market is going..

Good luck...

saffy..

[smerch1468] 18/7/2016 10:42

Analyst on Bloomberg says he expects the deal to go through with not much likelyhood of a counter offer from the likes of apple or Samsung. Softbank will fatten arm up and put it back on the market in 5 years was the quote.

Intel must be kicking themselves.

[alchemy30] 18/7/2016 10:36

Well done all holders !

Softbank CEO currently talking about the bid, looks like its the IoT side that they're after -
"Next big paradigm shift is coming in IoT...it will be a big opportunity for all of mankind and products used"

Being ignorant and having heard the IoT arguments a very long time ago, what are the bigger changes that are on the horizon for this technology ?