Berkeley Scott Share Discussion Threads

[stampcoverman] 01/2/2002 13:49

How about this for speculation. Terry Sadler sells his holdings to Quintile in exchange for a job on their board. Quintiles reduces the debt enough to make the Bank happy, share price recovers, everybody happy.

[paul dsp] 01/2/2002 13:44

Think about how much you would be willing to give shareholders if you represented somebody with money to spare to take this company off their hands. It won't be 0 pence, I shouldn't think, but it wont be very much either. At the moment, it is dying on its own, and any offer will be pitched to persuade Terry Sadler, and any other major holders, to walk away and not make a fuss. It is possible that a profit on the current share price can be made (especially as it has dropped 20% during today), but it is most likely that the offer will come in around, or maybe a little under the open market price.

For a company that makes a good case study of this sort or situation, look at the last few months for Cedar (CED)

Good luck all. And remember, nobody here actually knows what will happen, they can only speculate.

Paul DSP

[aghumra] 01/2/2002 13:36

Fat chance...

[stampcoverman] 01/2/2002 13:28

Dr.Biotech is right. If the aquisition is less than the debt, the shareholders get nothing. Liquidation would be the same result. The only good result for shareholders is that Bioglan keeps trading and is seen to be reducing its debt mountain.

[saturn5] 01/2/2002 13:20

What is says is that the offer will not be more than the debt but it does not say that all the debt will be cleared

[stampcoverman] 01/2/2002 13:08

So if you liquidate the company does that cover the debts ?

[schruh] 01/2/2002 11:56

This also makes sense to me.
Good news.

[conc2] 01/2/2002 11:50

what would be the point of that , it would make better sense to liquidate to company as NAV must still be way above current share price

[stampcoverman] 01/2/2002 11:37

Just when you think it can't get any worse......Bioglan comes out with a completely unhelpful statement. If all the shares are sold for less than the debt then the shareholders lose everything because the shareholders get paid last. The only winners are the company that takes the business and the bank.

The only result for the shareholders is that Bioglan continues trading.

[conc2] 01/2/2002 11:29

fear of the unknown ,
Way I see things ,it all depends on what debt position is accepted in the offer by the third party and banks thus leaving whatever for the shareholders
or am I reading the RNS through rose tinted glasses
What happened to Quintiles ?
Who are the third party ?

[glynwiseman] 01/2/2002 11:15

Surely this deal should be good for the share price but it has dropped 19% today - Have I missed something here? and can anyone explain why the price has dropped so much today?

[conc2] 01/2/2002 10:40

nearly half the shares are owned by management , why would they accept a deal that only paid the banks , when Quintiles 30% deal would add value to their stake ?
Any guesses how this will turn out ?

[saturn5] 01/2/2002 10:31

Why is the third party going for all the shares now and not going for say 50%?

[conc2] 01/2/2002 09:59

What now?????

[conc2] 01/2/2002 08:01

Doesn't suggest that this offer will leave us share holders with nothing , if this was the case better to go into liquidation as NAV is around 40 million

[wetdream] 01/2/2002 00:50

Presumably with Goldman Sachs' guidance and the OK of the banks, it looks like BGP is making a tactical withdrawal from the US, transferring marketing rights to Quintiles, and paying down their debt.
Since most of their current revenues were in Europe in any case that doesn't seem too bad, considering their dire condition.
However, it must severely hamper their plans for global domination of the dermatological market!
But what does it all mean for the BGP share price?!
No doubt Sadler will (correctly) take the biggest hit.
Any views?
Worth a punt @ 7p?

[biomax] 31/1/2002 23:30

Discussions as to the allocation of the economic value of any offer between the Company's banks and its shareholders have yet to be concluded.

i guess the shareholders have to persvade banker to share some dosh, not sure whether bankers will be willing to share

[saturn5] 31/1/2002 23:30

As I see it the amount payed for shares in the takeover or partial takeover will not be more than the debt.That can be interpreted that all the debt will not be cleared and that either the offer will be a good bit less than 115p say 50p or the takeover will be partial say 50%.So we could see
50% debt cleared and 50p for each share or
75% debt cleared and 25p for each share. The banks should be prepared to take on some debt which is usual.

[stampcoverman] 31/1/2002 22:40

I agree with wetdream, many companies continue trading in debt. Supposedly, BGP only went into debt suddenly because the BMS deal collapsed. If this is true then they will eventually recover with a restructured company more favouable to the market. I remember from the last set of figures that the turnover was rising nicely, even before the Solaraze product came into the picture.

The Quintiles deal would reduce the debt sufficiently so that the debt mountain becomes just a 'hill'.

Anyway, it sounds like its all about to happen and we should be put out of our misery soon.

[wetdream] 31/1/2002 22:04

Would guess that the Bloomberg story and the Quintiles deal are one and the same.
What puzzles me is - why should all debt have to be cleared?
Surely companies trade with some debt as part of their business?
BGP's dermatological products generate a good margin which over time could be used to reduce any remaining debt.

[cavehomme] 31/1/2002 21:55

...must be something good on the telly tonight...?

[cavehomme] 31/1/2002 21:21

= 115p and they of course take on the £110 million debt, but pay that off through some deal with the banks.

Bank happy, shareholders happy (well those who bought at less than 115p - and 7p today), that's why someone bought 1,000,000 shares at 16:28 today before the later announcement !!!

Could be completely wrong, that's my interpretation of the RNS anyway, and if I am right gives a debt gearing of 100%, but that's no worse than quite a few other companies.

OK, so cavehomme has had a few glasses of the good red stuff in his 'cave', so please correct me if this is a daft interpretation.

[bensoni] 31/1/2002 21:09

Did anyone see the bit on Bloomberg that said that Bioglan have received an offer for the whole company? If so, what was said?
I read about this on another BB.

Would not be too happy if it was true. The deal with Quintiles from the FT sounds better to me but would have to know the details behind both of these first

[sholcroft] 31/1/2002 21:08

What exactly does a "bid that dosen`t exceed current debts" mean. Does it means the company continues trading under new ownership or does it mean that the shares are worth nothing as they no longer belong to the origianl company????????? Basically I wanna know where I stand :)