De La Rue Share Discussion Threads

[chri5 wright] 07/12/2010 11:14

thanks eric, i think i shall hold. i think all the bad news is in the price, india cant be sure of better service elsewhere, and you never really know a supplier until after you have had an upset _ i think the indians would be rash to move the business. the company will have to pull its socks up, or one day it will get swallowed up. a hold for now, to await developments..

[abcd1234] 07/12/2010 07:43

Oberthur is thought not to have ruled out the prospect of a higher bid. A hostile offer is also thought to be a possibility, although no decision has been made and Oberthur hopes to secure the backing of De La Rue's board.

De La Rue put out a second statement after the markets closed , in which it responded to Oberthur's announcement.

The group's chairman, Nicholas Brookes, said that the board had "no hesitation" in rejecting Oberthur's bid which "does not begin to reflect De La Rue's fundamental value".

Brookes added: "We are addressing the current issues, which should not detract from the attractive medium and long-term prospects for the company."

De La Rue is in a vulnerable position, being without a chief executive and at risk of losing its biggest client – Reserve Bank of India – which is thought to represent about a quarter of group revenues. The production errors uncovered at its plant in Overton, Hampshire, are thought to relate to the manufacture of the paper used for India's banknotes.

Last month De La Rue admitted that these problems had cost it £35m in lost sales in the six months to 25 September.

However, with De La Rue close to appointing Emerson power services group chairman Tim Cobbold as its new chief executive, the group believes it has a bright future as an independent company.

Analysts agree that De La Rue is fundamentally a sound business and could attract a bid of up to £10.00 a share. Germany's Giesecke & Devrient, the world's second biggest banknote printer, was cited as another potential bidder.

Guy Hewett, an analyst at Investec, said: "De La Rue is an asset with substantial long-term value and I wouldn't be surprised if this approach flushed out other interest."
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[eric gardener] 06/12/2010 21:05

chris - possibly, who knows I doubt that they'll accept anything less than 1300 - 1400. It may conceivably go up further from here but for me the price action leading up to this just goes to show how ruthless the market has been with this co.

One minute it's all about a fraud office probe, losing a major customer, divi cut and has dlar finally shot itself in the foot once and it's heading for £5 and now it's all about some outfit no one has ever heard of trying to buy the whole company?

[topvest] 06/12/2010 20:29

I'm a bit irritated that Dela Rue didn't mention the £9 price first thing this morning, given I believe £8 had been mentioned elsewhere and was obviously inaccurate. Shouldn't they have released an accurate statement first thing, rather than allow a somewhat false market this morning? I've lost a little money by selling at the lower price!

[chri5 wright] 06/12/2010 16:15

Eric, you dont think another bidder will pop up, or that shareholder pressure will take the 9.05 offer then ?

[eric gardener] 06/12/2010 16:01

well interesting stuff indeed. who would have thought this would happen, as I was thinking shall I dive at 525p?

Just as I was battening down the hatches to sit this one out it's turned on a six pence and the profit and a exit is too much to resist.

In just over 4 months I've made 22.3% on the money I've invested and would have loved to have qualified for the div but funds are needed elsewhere. Someone else can have it!

[chri5 wright] 06/12/2010 15:57

i'm having to sit on my hands rather than secumb to the temptation to sell, i'm certain the price will have no alternative than to go up further, but a profit is itching at me....i'm going to hold on..

[redips2] 06/12/2010 15:33

Well you would---prob worth closer to 9.25p-imo.

[tsmith2] 06/12/2010 15:15

game on - probably sticking out for a higher bid!

[chri5 wright] 06/12/2010 15:05

the bid is rejected !

[tsmith2] 06/12/2010 15:05

Bid at 905p confirmed

[eurochamps5times] 06/12/2010 15:03

The bid is 905p !!

[bish100] 06/12/2010 14:52

Sudden jump by 10%-??????????????????????????

[killieboy] 06/12/2010 12:25

Nellie - was well over 800p this morning on the breaking news - hope you used this a sell opportunity.

[nellie1973] 06/12/2010 11:37

Broker upgrade-BUY target price 800p

[killieboy] 06/12/2010 09:23

Taken profit - good luck to those that remain long.

[jon827] 06/12/2010 09:19

It is a reminder why shorting companies is risky, it would be nice to know who was given this news on Wednesday last week

[dawntrader] 06/12/2010 09:18

OOOPPPPPS .. Still least I was not short.

[smurfy2001] 06/12/2010 09:18

hvs = fried dog

[killieboy] 06/12/2010 09:14

See post 371 - hate to say it but.................... poor shorters!! HVS how much have you lost?

[topvest] 06/12/2010 08:35

Sold out on this good news. Too much uncertainty. Only lost 10% which in the circumstances is not a bad result.

[tweeeek] 06/12/2010 08:34

Goodness came in this morning and its mayhem, I'll get my coat and collect my p45 on the way out.

[jon827] 06/12/2010 08:25

Unlucky tweeeek lol, I nearly shorted it the other week as well

[redips2] 06/12/2010 07:41

T/o offer from french co rejected at 800mill.

[jon827] 05/12/2010 19:03

This will be why the sudden reverse in trend last week

De La Rue, the troubled currency printer, has received a secret takeover bid from Oberthur Technologies, a privately-owned French rival. The all-cash offer valued De La Rue at about £750m and was made in the last few weeks, I am told.