Biffa Share Discussion Threads

[mitzis] 27/11/2007 15:31

pretty positive today markinthepark despite Credit Suisse.

[markinthepark] 27/11/2007 12:20

Well we need some clear statements tomorrow by the look of things here....

Credit Suisse said the onus was now on Biffa management to use Tuesday's interim figures to explain their reasoning for rejecting the takeover proposal.

"We think that the [rejection statement] puts the onus on Biffa management to either (i) show that they can get more impetus downstream or (ii) indicate that they are seriously open to a deal at the right price. Doing neither this week will be negative for the stock," Credit Suisse wrote.

[mitzis] 27/11/2007 08:55

All the best to you gucci..

[royaloak] 27/11/2007 08:50

John1,

I understand and probably a good way to play it, certainly on today's start, just think anyone who is short only could get caught out.

[johne1] 27/11/2007 06:45

I know it's a bit risky but, I have a small hedge, with a very short term bet for the shares to go down - tight stop loss in place, (reasons as gucci post). Also, if news of further/counter bids is slow to come in, we could keep sliding. If the shares do retrace, then the proceeds from the short should help to fund topping up at lower levels.

If the shares go up, then we will all be happy anyway.

I hope that makes sense. It's what I have been doing for some time here.

[royaloak] 26/11/2007 22:58

Be careful, Montagu and Hg Capital have said they will continue to build a stake in the company and reserve the right to come back with an offer.

[gucci] 26/11/2007 22:52

hi mit,
nice to see you around
will top up at 250p
looks like we've another down day tomorrow with dow down over 200 tonight!!!

[andyderbys] 26/11/2007 19:56

Biffa bid binned

Created:
26 November 2007
Written by:
Algy Hall

Shares in waste management company Biffa ended last week sharply ahead on bid hopes, but have gone into reverse today, dropping 11 per cent on news that no offers are currently on the table.

Biffa's shares surged from 260p to 325p on Friday after private equity groups Montagu and Hg Pooled Management said they'd had a bid rebuffed in September. However, Biffa said today that since it rejected the offer on 4 September, nothing else had been tabled, which has dented hopes that a better offer could be forthcoming following interim results scheduled for Wednesday.

The chances of a bid have also been reduced by the deepening credit crisis, although some infrastructure deals are still being completed despite the turmoil. Indeed, October saw the prices of both Biffa and rival Shanks rise following news from across the pond of a private equity-backed management offer for Waste Industries USA.

A key attraction of Biffa for any potential bidder is the group's landfill assets. These have become increasingly valuable as the government has attempted to limit the amount of landfill available. This constriction of supply has more than offset its parallel efforts to reduce demand for landfill, by forcing local authorities to recycle, compost or incinerate more waste.

Biffa also looks set to benefit an ongoing rise in waste management spending by local authorities as they try and meet strict EU landfill reduction targets, because its non-landfill business runs recycling operations on behalf of local authorities.

IC VIEW:
FairlyPriced

Biffa's certainly has its attractions against the backdrop of current economic uncertainty. However, bid hopes have never been far from the surface which has put a punchy valuation on the shares. So given the credit squeeze's impact on merger and acquisition activity, and some recent difficulties in rubbish collection, the shares look fairly priced at 291p.

Last IC View: Good Value, 257p, 31 Oct 2007.

[mitzis] 26/11/2007 17:33

Hi gucci

Dont worry Bifa are a beacon in an other world of tumbling share prices after we have a possible bid rejected by management in September and who knows the French waiting for a bargain at 250p they represent a good chance to top up.
Venture Production and Biffa what a combination..

[ideal420] 26/11/2007 17:28

For some reason I think 270 might be a new low limit...... whats the reason? Oh, ehh, wishful thinking maybe :)

Having read various books which say "don't average down", it's annoying me that in 4/5 of my current holdings it would have worked really well!

I've robbed next door so have enough to grab some more at 230 if we get there again (and with a shaky FTSE and high oil prices its quite possible).

[gucci] 26/11/2007 13:54

looks like we're heading back to 250p for the moment

[mr.oz] 26/11/2007 13:35

Markie ... my sentiments , at least for the moment !

[markinthepark] 26/11/2007 12:49

and some of us are just sitting pretty watching all the fun.......

[yewtrees] 26/11/2007 12:27

Some cashing in their 15%, others taking a punt.

[theband] 26/11/2007 12:08

trades very busy now @295, far more trades than normal. Something occuring ??

[mitzis] 26/11/2007 11:50

You dont know how true that is wad collector ..lol.

[wad collector] 26/11/2007 11:47

Bet you are the office cleaner.

[mitzis] 26/11/2007 11:36

money to be made here.. the office cleaner told me.

[theband] 26/11/2007 09:38

Montagu said it and HgCapital approached Biffa to secure a recommended cash
offer for Biffa and any offer, if made, would be at a significant premium to its
share price immediately prior to the approach on Sept 4.

When you think back to September and we were on here pulling our hair out at 220 wouldn't it have been great if the tea lady present at the above meeting had come on here and said,'i don't know if you lot are interested but today some guys came to the office ..............

[wad collector] 26/11/2007 09:36

Congratulations to anyone who sold on Friday ! Not me .

[markie7] 26/11/2007 09:25

my reading of this is that it is a dead duck. but I'm not quite sure why the "bidder" made an announcement on friday.

[theband] 26/11/2007 09:19

As Jimmy used to say,'it's a funny old game'

[holts] 26/11/2007 09:04

very uncivilised of them to make a statement re share price movement.

[theband] 26/11/2007 08:36

looking at trades around 8.32 buys are all of a similar amount. Obviously not a coincidence but what does it mean, i didnt think they made stake building that obvious. Under 300 looks tempting now we have it confirmed there are suitors out there.imo

[elmfield] 26/11/2007 07:54

buy/sell/hold?