Charter Intl Share Discussion Threads

[steeplejack] 05/9/2011 07:17

Capped at around a billion dollars, Charter would be sizeable merger for Colfax.In effect ,a reverse takeover that'd suit Charter's management rather well i reckon.Excellent share price performance this year.CFX up some 27% on NYSE.

"The Company expects the acquisition, if completed, would be significantly accretive to earnings on a fully diluted basis(1) and would achieve a double-digit return on invested capital within three to five years"

[eipgam] 04/9/2011 09:37

Charter attacks its shareholders

Charter chairman Lars Emilson has criticised the company's leading investors for coming out too early in support of the £1.44bn Melrose bid.

[only who?] 01/9/2011 20:01

Worth every penny... as long as they're not paid more than 5p.

[eipgam] 01/9/2011 18:31

i wonder if anyone paid Numis for this gem of knowledge and opinion!

Numis upgrades Charter International from hold to add, target price raised from 840p to 850p.

[only who?] 01/9/2011 07:40

Looking forward to seeing the opening SP!

[steeplejack] 01/9/2011 07:23

So,i presume we are now to understand that Melrose and another unknown company are both doing due diligence.Hotting up.

[eipgam] 26/8/2011 19:19

Thanks 2nd. Still holding....

You wouldn't expect the DOW to have much effect this situation, but it obviously has today.

[seconduser] 26/8/2011 12:28

Is eipgam around? Where there duplicate tickers for a company use the sedol, isin or cusip to search Data Explorers. For Charter the ISIN is JE00B3CX4509. Current stock on loan is around 3.5 million - down a lot from July (as below).

9.2 million in June (5.6%).
15.7 million on loan at end July - 9.56%

Also article in Herald states that (yesterday) Charter have left put up or shut up in place unless Melsrose increase their offer. My take - this combined with mystery still surrounding the other buyer seems to have led to uncertainty - which the market doesn't like, so mark down.

[lennonsalive] 26/8/2011 09:34

This remind me of Micro Focus, the long it went on the more the price went down.

[only who?] 26/8/2011 09:32

Good points. In my experience there's usually a good reason for a share price to be lower or higher than 'logic' suggests, because the big players always have more info than those of us at the other end of the chain.

[steeplejack] 26/8/2011 08:58

As far as Melrose is concerned,Charter is a pretty large morsel.Given that it's anticipated to construct a bid constituted of perhaps 70% paper,perhaps the market fears that a weak share price could ultimately scupper a definitive offer but i consider that unlikely.If due diligence confirms Charter's attractions, i don't see Melrose backing off and i don't see banking finance being a problem.Moreover,we know that Melrose has hardcore institutional support especially from the cross-holding quarter.The hedge funds of Charter might be a bit skittish and can be expected to go with the highest bidder but they're keen a deal gets done.

The only reason i can see for a weak Charter price is that the bidder currently in talks hasn't any great credibility ie perhaps it's a private equity consortium which will have to go through all the complications of stripping this out to sell to a Lincoln etc etc.However,even that doesn't explain why the price is some 20% lower than indicated bids.The market seems simplistically to have observed that Melrose's price is some 20% lower and adjusted the indicated terms accordingly.Perhaps they're right but i'd be very surprised even in these traumatised markets.

[seconduser] 25/8/2011 21:19

15.7 million on loan at end July - 9.56%, up from 9.2 million in June (5.6%). Not too much use given the changes over the last week or so.

[seconduser] 25/8/2011 12:55

Sorry. Didn't notice it had pulled up Cco Holdings (US co I guess). You're right, it won't show CHTR:LSE.

[eipgam] 25/8/2011 12:27

60 mill? Thats more than a third of the stock

I tried to verify on dataexplorers and it would not give details for CHTR

[seconduser] 25/8/2011 10:41

60 million shares on loan (shorts need to protect positions). Melrose offer of 840/870 subject to due diligence (not done deal). Identity of "white knight" bidder not known yet (credibility).

[only who?] 25/8/2011 08:42

Hmm... can't see why the share price isn't about 100p higher by now.

[seconduser] 25/8/2011 08:15

eipgam - so right. We may find out who the other party is soon. The Tempus team (Times) believes that Melrose will lose out with their mixed share/cash offer to a higher cash offer.

[eipgam] 24/8/2011 17:22

probably buyers from yesterday selling today..... Did I say probably? I, of course, mean possibly.

There is more to this story... and the share price imo

[lennonsalive] 24/8/2011 13:01

Who knows, sell order book on L2 quite busy....so I'm out for now.

[only who?] 24/8/2011 12:39

Melrose still buying?

[seconduser] 24/8/2011 12:13

Maybe, who knows? You pays your money, you takes your choice.

[only who?] 24/8/2011 12:06

Another interpretation is that the same people who knew in advance about yesterday's RNS now know there's bad news on the way.

[seconduser] 24/8/2011 11:36

I guess that the market doesn't like uncertainty and if someone is trying to build a position they need it to drop - hence stock on loan has increased marginally.