Charter Intl Share Discussion Threads

[stevemarkus] 04/11/2011 10:30

I suspect strength is due to the share price of Colfax which has gone up quite sharply (probably something to do with the latest positive Charter IMS and the market applauding their purchase) - puts the latest expected bid value at about 935p. Of course that's not due to come until sometime in the new year and a lot can happen between now and then, so may be quite a wise move to realise some profits.

Cheers,
Steve.

[jrr774] 03/11/2011 16:05

Sold at a fraction over 9.07. Not sure whether the recent strength is bears closing out or speculation of a counter offer but I'm happy to take money off the table. GL to all still in.

[eipgam] 18/10/2011 17:12

Good luck Chaps... I think the deal will go ahead but I can't see a significant rise tommorow. But it'll be a damn sight better than it was when they released the results.

I sold at 873 and bought MRO @ 302 as a result of the director buys over there.

[jacks13] 18/10/2011 15:03

915+ ?

Presumably the $/£ rate would have to strengthen and Colfax's share price would need to rise.
The Colfax bid is worth 900p as at 14 Oct.

[eipgam] 03/10/2011 12:27

there's more to happen here I think.

UBS have just bought a big wedge. Now over 5% from no previous disclosure (so they had anything between nowt and 3%)

[jacks13] 28/9/2011 08:10

Schroder's criticism may be justified but Melrose themselves did not appear to be all that accommodative. Their approach appeared predatory and had a 'we're in charge, take it or leave it' whiff about it. At least that's how it seemed from the sidelines. Their timing was also nakedly opportunistic and they were not, in my view, all that keen to engage themselves.

[masurenguy] 28/9/2011 08:00

RNS Number : 0546P
Schroder Investment Management Ltd
27 September 2011

SCHRODER STATEMENT RE CHARTER / MELROSE

'We are disappointed, though not altogether surprised, that Melrose has had to withdraw its potential offer for Charter. As long term shareholders in Charter, we believe there is substantial upside in the company which, in our view, would have been realised over the next 3-5 years under management by Melrose in a UK listed company. We were supportive of the Melrose offer as we never wished to be 'cashed out' of the long-term potential of the Charter businesses today, but to be able to participate in the future upside under the terms of the Melrose offer. In our view it is disappointing that the opportunity was not taken by the Charter board and its advisors to engage with Melrose and, instead, to solicit alternative approaches - to the extent of paying an inducement fee to their preferred US suitor. They may deem this outcome a satisfactory result for shareholders but we regard it as a victory for short-termism and a defeat for shareholders with a long term investment time horizon.'

[jrr774] 27/9/2011 23:44

Melrose walk away and the price rises 14p. Should see 950 if Colfax walk too...

[eipgam] 25/9/2011 15:51

similar article in STimes today

[eipgam] 24/9/2011 10:08

Copied from the FT and it's fine team of journos....



Melrose sounds out Charter's investors

By Alistair Gray and Anousha Sakoui

Melrose has begun to sound out shareholders in Charter International about scuppering Colfax's recommended £1.5bn ($2.3bn) offer for the FTSE 250 engineering company, with a view to seeking irrevocable acceptances for a possible counterbid.

The development comes after Melrose's share price fell sharply in recent days relative to Colfax, which has reduced the value of Melrose's indicative cash and shares bid. Shares in Melrose closed down 5.9p at 275.1p on Friday, valuing its indicative bid at 806p a share.

Based on the price of Colfax's New York-listed shares on Friday afternoon, the US company's offer valued Charter at 908p a share.

In spite of the gap – which has widened significantly in recent days – Charter's two biggest shareholders, Aviva and Schroders, are supportive of a formal bid by Melrose even though Charter's board backs the Colfax offer.

Together, Aviva and Schroders hold about 17 per cent of the shares, which makes it harder for Colfax to reach the 75 per cent threshold to implement the deal by way of a scheme of arrangement as it intends.

Shares in Charter closed down 6½p at 856½p on Friday, a significant discount to Colfax's offer.

Chris Murphy, UK equities fund manager at Aviva Investors, said: "The recent market turmoil has not changed our firmly held view that Melrose is the best manager for the Charter assets.

"Melrose has a demonstrable track record and is conservatively financed. The Colfax bid materially undervalues Charter against what we believe Melrose will deliver in the medium to long term."

Aviva has in recent days become the biggest shareholder in Charter with an 8.7 per cent stake, according to Bloomberg. It also holds 3.5 per cent in Melrose.

Chris Miller, executive chairman of Melrose, met one leading shareholder at the end of this week. Further meetings with shareholders are likely.

Melrose has nearly completed its due diligence, and is close to finalising financing that will allow it to make a formal offer, one person familiar with the situation said. An offer from Melrose is not expected imminently, however.

A person familiar with the situation said the board of Charter could provide informal support for an improved Melrose offer at 5p to 10p less per share than Colfax's offer.

A person close to Charter said: "The offer from Colfax is the only offer that is on the table and the board felt that it was attractive and should be recommended to shareholders. At today's values, it is worth 13 per cent more than the Melrose proposal."

[eipgam] 23/9/2011 16:51

Morgan Stanley bought at least 3.5million shares yesterday during the market meltdown... according to the RNS they went from below 3% to 5.08%.... but looking at the trades, I am not sure where they bought them.

[eipgam] 20/9/2011 16:05

probably to do with DOW spike

[eipgam] 20/9/2011 15:49

sp up... more news? Please!

[andrewhbruce] 13/9/2011 14:48

Tom

I get the feeling that the institutional investors in Charter would prefer Melrose paper - even a merger has been suggested, particularly as they can't hold Colfax shares. So assuming due diligence was OK - it presumably was for Colfax - then we could well be looking at a sweetner from Melrose, in the form of more shares? Still we have the problem of how much is a Melrose share worth? Can't see any more cash. Maybe Colfax have left the door open for a full cash offer?? The Times correspondents certainly don't think the fat lady has started singing yet!!

[andrewhbruce] 12/9/2011 16:33

Melrose is not the sort to walk away easily, depends on how much cash they can extract, too many new shares would be pointless I feel, as the share price would plummet?? It would probably plummet anyway!
Another UK stalwart goes overseas!!

[eipgam] 12/9/2011 15:46

does anybody think Melrose will come back?

[eipgam] 12/9/2011 15:36

Thanks for the calculation and clarification AHB

Colfax currently down 10.5% @ $20.62 up from a day low of $20.11

[andrewhbruce] 12/9/2011 14:37

So 180p ( 910 - 730 cash ) relates to proportion in Colfax shares. The current 50p discount allows Colfax shares to fall 28% (50/180), would have thought 15% would be nearer the mark - excluding time and exchange rate - that would give 910 - 27 or 883, so OK 875 makes sense Tom

AB

[tom111] 12/9/2011 10:33

Took a chance and sold at £8.75. now looks to be the right decision,didnt expect to see shares offered as well

[eipgam] 12/9/2011 09:56

previously reported as an all cash offer.... now to include Colfax shares

[killieboy] 12/9/2011 09:51

Looks like we will get 910p so why is the share price still around the 850p mark!