Close Brothers Share Discussion Threads

[roidstermuthafukk] 10/1/2008 08:31

morning saff!.interesting...already heavy volume!

[safman] 10/1/2008 08:20

morning.. watching with interest..

saffy

[roidstermuthafukk] 10/1/2008 08:16

cant see a 10.40 bid...when sahre price has now been over a tenner...why would investors hold out for 4%?? so I think it would have to be 11.50-12pounds what do you guys think?? thoughts welcome

Rich

[roidstermuthafukk] 10/1/2008 08:14

cant see that a 10.40 bid would be accepted when current share price is 10.00! or there abouts.....why hold out for 4% so it must be at least 11-12 min take out....thoughts welcome on this guys!??

[safman] 09/1/2008 14:53

absolutley.. things will probably change regardless...

saffy..

[scatty] 09/1/2008 14:31

Despite the uptick in price, I cannot see the announcement as supportive. In the absence of firmer intentions from Cenkos or Blackstone, the downside risk is a distinct possibility!

[safman] 09/1/2008 14:09

edging towards ten quid..

very similar views scatty..

saffy..

[scatty] 09/1/2008 13:46

The memo above does not mention Cenkos - but the preceeding article suggests that Cenkos has not signed a confidentiality agreement so information has not been shared to date. Does this not make an imminent improved offer from Cenkos unlikely?? The staff moves must be unsettling to any suitor - particularly if they are approaching half-heartedly as a white knight. And the memo also quashes the suggestion that contact has been made with Martin Gudgeon (although I suppose a presentation could have been made to Blackstone without his presence). All confusing, and not particuarly supportive of an outcome which would move the share price higher, IMO - anyone have any other views??

[safman] 09/1/2008 12:27

lose Brothers boss rallies staff
Wednesday, 9th January 2008

Colin Keogh, chief executive of Close Brothers, has issued a rallying call to all of its employees following suggestions that the company is bleeding staff to its rivals.

In a memo seen by The Daily Telegraph, Mr Keogh writes to reassure his bankers, traders and fund managers that "the fact is that staff turnover figures in all businesses are well below industry averages. The timing of the recent departures from Winterflood is unsatisfactory, but this was five people out of a securities house of 270 and a total of 2,600".

The memo comes as Close Brothers grapples with a number of bid approaches for the business. Late last year, broker Cenkos Securities, run by Collins Stewart founder Andy Stewart, made a 950p-a-share joint bid approach with Icelandic bank Landsbanki. Since then, the company has received a number of other bid proposals. The approaches have come from Tata, Orix, Collins Stewart and Blackstone, which last year hired Martin Gudgeon, former head of advisory and restructuring at Close Brothers.

Mr Gudgeon is said to be leading Blackstone's bid for Close Brothers and is reported to have held talks with Close Brothers' management. However, Mr Keogh yesterday wrote in his memo that "we have had no contact with Martin Gudgeon since he left and have certainly not made any presentation to him".

Some bidders have been given access to confidential information to carry out due diligence on Close Brothers. Cenkos, though, has not received information after refusing to sign a non-disclosure agreement sent to the company by Close Brothers and its advisers, said people familiar with the matter. None of the parties involved would comment.

COLIN KEOGH'S MEMO TO STAFF

From: Jane Rix On Behalf Of Colin Keogh Sent: 08 January 2008 17:12 To: Allsubs Subject: Close Brothers Group update

Dear Colleagues,

I am writing to you again because I know how potentially unsettling some of the recent inaccurate press coverage has been. The article in The Times today is especially disingenuous, seeking to create a link between our current situation and the departure of someone who announced their resignation in early September last year. This is patently inaccurate. It is also worth noting, for example, that we have had no contact with Martin Gudgeon since he left and have certainly not made any presentation to him.

The fact is that staff turnover figures in all businesses are well below industry averages. The timing of the recent departures from Winterflood is unsatisfactory, but this was five people out of a securities house of 270 and total CBG employees of 2,600.

To a large extent I am limited by what I can say to you, and external audiences, by Takeover Panel rules. However, I want to reiterate that we have a strikingly successful business model at Close Brothers Group. This has helped us deliver outstanding profitability and return on capital over many years. Our diversity of operations, coupled with our strong financial position gives us a powerful competitive advantage, especially in today's difficult market conditions. We have fostered an entrepreneurial environment where the best people in the business are encouraged to develop independent careers. Close Brothers is and will remain an extremely attractive place to work.

The process I and the Board are pursuing is the one we believe to be best for CBG. We have a variety of options on the table. As you will understand, I cannot say anything more specific at this time. I can say that we are examining a variety of different options. Some of these might result in the sale of CBG but this is by no means a foregone conclusion. If we conclude that this is not the best way forward then let me assure you that we have a robust set of alternative future plans.

I therefore urge you to remain focused on your jobs, on developing existing client relationships and pursuing new business. We have a great heritage at CBG of being a leading independent merchant bank, with some of the best people and clients in our sectors. We must all ensure that we work to preserve this.

Colin Keogh - Chief Executive Close Brothers Group

[safman] 09/1/2008 10:42

don't know.. but vol seems v good on an almost daily basis... shares swapping hands..? #10.50p per share quoted on the papers..

saffy..

[roidstermuthafukk] 08/1/2008 17:40

what about the big sells at the end after hours...bit worrying...what do you think saff??? bad news on ther horizon!??

[roidstermuthafukk] 08/1/2008 17:34

saff how do you see 12 quid...when the papers are speculatin 10.40 ish?? let me have your thoughts!

Rich

[safman] 08/1/2008 14:54

v good vol on CBG... more speculation..

saffy..

[safman] 08/1/2008 11:55

t'will be an interesting few days.. a offer of say around 12 quid per share ?... they have the ball rolling with close..although i'm still rather hoping it stays independent..

saffy..

[safman] 08/1/2008 08:55

edging towrds ten quid...

saffy..

[safman] 08/1/2008 08:16

hmm.. moving in and around the 950+ bracket.. interesting to see blackstone looking at close..

good luck..

saffy..

[scatty] 05/1/2008 15:47

As the board considered 950p opportunistic, anything within 10% of that is unlikely to be enthusiastically endorsed by investors or the Board, IMO. In view of the likely offloading of Winterfloods, thus minimising the risks to Blackstone and offering more opportunity to leverage the remainder for profit, I would have thought the offer would be worthwhile at much higher levels. Initially, I would have expected around £12 - at least that would be above the 12-month high. With cash of £250m on the balance sheet (have not checked your figures) and perhaps £700m from Cenkos for Winterfloods, the net cost of the remainder falls, and still offers scope for Blackstone to make a good turn on this - the fund management, discretionary management, derivative trading etc. I believe there are offshore businesses too.

[roidstermuthafukk] 05/1/2008 14:17

Expect cenkos to come bidding then.....nose will be well out of joint...realistically what are your thoughts (or anyones) on the premium....The paper says 10-10.40...but surely its got to be worth more than that!??? winterflood at least 600m ...say 650-700m = about 4.50 -5.00 per share + cash approx 250M (i think) so about 1.70 so thats 6.70ish so the rest of the business is worth more than 500m.....I would have thought final take out must be 12 pounds at least??? any thoughts welcome

[scatty] 05/1/2008 13:03

From Citywire newspaper roundup this morning >>>

"Blackstone, the US private equity group, has made a bid for Close Brothers, the 130-year-old UK investment bank that's also being pursued by Andy Stewart's Cenkos, several papers are reporting, following meetings yesterday; Blackstone is said to plan on selling on Close Brothers's Winterflood Securities broking business to Collins Stewart."

[scatty] 05/1/2008 11:57

Interesting to see the resilence in the midst of turmoil in other financials - of course, a different business model and diversified in non-retail areas. The announcements have also indicated long positions by a range of institutions. IMO, the Cenkos approach is opportunistic. If a takeover happens, then the individual divisions making up Close can probably be sold off separately - with the derivatives, fund management and Winterfloods units suiting some very large players. While short-term earnings may come under pressure in this environment, the current market cap is not demanding for the sum of the parts (and well below levels of last year). Also, the market volatility should boost some parts of the business.

[roidstermuthafukk] 05/1/2008 10:57

looks like 10.50 to start then!

[roidstermuthafukk] 21/12/2007 16:01

yeah...think so saff...i think it will break up....therefore we win....or it will be bought out entirely, and bits sold off....realistically, think its worth 11 pounds (its hight his year....plus the premium plus it has 250 million in cash, i think.....so say 30-40% premium equals around 15 to 16 pounds...which is good value.....and great for us...i expect a full bid will see 12-13 pounds start, before a full auction.....the big boys will be waiting in the wings.....Stewart has not got a hope i think!

[safman] 21/12/2007 13:59

a bit of volume.. i think its going to be an interesting new yr..

good luck..

saffy..