Ducat Ventures Share Discussion Threads

[adh0] 13/1/2005 23:10

From the FT:

Durlacher, the boutique investment bank that rose and fell with the dotcom bubble, on Thursday revealed that it was in takeover talks with a third party.

The shares were suspended at 108½p, capitalising the company at £21.5m as Durlacher said it was discussing a proposal to merge with a larger, privately owned company keen to retain Durlacher's listing on the UK stock market.

The announcement spurred speculation that it had been approached by Icelandic banks known to have ambitions to expand into the UK.

The specialist financials sector is ripe for consolidation, said analysts.

There has been a proliferation of small brokerships setting up over the past few years and not all of them can survive, they said.

Smaller brokers are struggling to gain critical mass while others, which have built up cash reserves and taken heart from the recovery in stock market activity, have started to look at strategic acquisitions.

"The broking sector may be a very different landscape by the end of this year," said Jeremy Grime, analyst at Altium Securities.

This week, Durlacher's share price jumped 9 per cent to 101p on rumours that it would be subject of a takeover bid.

Durlacher, whose market capitalisation touched £2bn at the height of the technology boom, has suffered a series of setbacks since the bubble collapsed and tech stocks tumbled.

The group has worked hard to broaden its client base since then and has about 48 corporate broking clients. However, it was hit again last October when Christopher Stainforth, chief executive, resigned abruptly.

The attraction of Durlacher, said brokers, lies in its tax losses on trading of £10m - the company reported retained losses of £48m at the end of June - and £8m in cash.

Some analysts have suggested Durlacher might be considering a tie-up with Williams de Broe, the broker owned by the Dutch bank ING, which failed to pull off a £42m management buy-out in 2002.

Speculation has also centred round the intentions of Kaupthing and Landsbanki, the Icelandic banks.

Kaupthing has indicated that it would be keen to obtain a UK listing, possibly through an acquisition, as well as a UK banking and broking licence. In October, Landsbanki was rebuffed by Numis, the UK broker specialising in insurance, energy and media.

Shares in Secure Trust, which owns broker Arbuthnot Securities, were up 9 per cent on Thursday on rumours that it might be looking at ways of demerging Arbuthnot.

[dodgyroger2] 13/1/2005 13:55

Durlacher in bid talks
Guy Dresser, This is Money,
13 January 2005
MINI-investment bank Durlacher admitted today that it is in early stage bid talks. The market had been awash with rumours since Tuesday when the company's share price jumped 8%. Durlacher shares were suspended this morning and there was no word on the likely bidder.


However, Simon Hirst, the firm's former head of corporate finance took over from chief executive Christopher Stainforth in December. Hirst is known to have been looking for a tie-up with another small City outfit. And corporate finance sources suggested that rival broker WH Ireland might be interested in making a bid.


In a statement to the stock market, Durlacher said the potential acquisition, if successful, would constitute a reverse takeover but there was no guarantee that the early-stage talks would actually result in an agreed transaction. Another rumour, considered less likely following Durlacher's statement, had suggested an Icelandic bank.

D2

[juan1] 13/1/2005 12:22

It appears DUC are the acquisitors in a reverse takeover of a larger company.
It is necessary if DUC wishes to compete beyond its present restricted state.

[crosso] 13/1/2005 11:11

As I'm 20% up at £1.07 bring it on. Anyone offering over £1.25 gets my vote.

Good luck to all and I guess time will tell when they make the next announcement.

[adh0] 13/1/2005 10:26

DURLACHER SHARES JUMP ON TAKEOVER TALK
By Philip Stafford and Chris Flood
Published: January 12 2005 02:00 | Last updated: January 12 2005 02:00

Durlacher jumped 9.2 per cent to 101p yesterday as a rumour that the small- cap stockbroker could be the subject of a takeover bid was again reheated. One analyst said the company was an attractive play, with a good pipeline of business at the small end of the market and a surplus of £3m on its balance sheet. However, the talk was downplayed by people close to the company.

[chapchip] 13/1/2005 09:18

and backing in to them............who could the potential suitors be ???

[chapchip] 13/1/2005 09:18

also sometimes way of a not listed co getting a listing by taking over the listed co

[dodgyroger2] 13/1/2005 09:13

Reverse Takeover - RTO

What does it mean:-

1. The buying out of larger company by a smaller company.

2. The purchasing of a public company by a private company.

A reverse takeover is often the cheapest way for a private company to obtain a listing on a stock exchange.

Also known as a reverse merger

D2

[chapchip] 13/1/2005 08:51

wow...interesting.......must be fairly well advanced for a suspension ???

[darias] 13/1/2005 08:48

Excuse my ignorance. What exactly is a "reverse" takeover and how does it differ from a normal takeover?

The RNS says that,

"it is in preliminary discussions with a third party regarding a potential acquisition that would constitute a reverse takeover."

Now does that mean that DUC are going to buy a company offering their stock so that the s/holders of that stock would hold more shares than current s/holders of DUC.

BTW the club bought at £1:16 in the middle of June. In view of the way this stock has acted in the past few months I think the club would take anything.

Regards.

[adh0] 13/1/2005 08:37

Aghh yes, suspended! (Im sure that wasn't there earlier though)

[dfgo] 13/1/2005 08:37

13 January 2005

Durlacher Corporation Plc

Acquisition discussions

The Board of Directors of Durlacher Corporation Plc notes the recent rise in
its share price and advises that it is in preliminary discussions with a third
party regarding a potential acquisition that would constitute a reverse
takeover under the Listing Rules of the UK Listing Authority. Talks are
progressing in good faith on both sides. However, given the early stage of
these discussions there can be no assurance that any transaction will be
completed.

A further announcement will be made in due course as soon as technically
practicable.

Enquiries:

David Rydell, Bell Pottinger Financial

Tel: [phone]



END

[adh0] 13/1/2005 08:36

I will take £3.50 too.
Would take £2.50 actually and a month ago £1.50 for that matter.

ECK = What have they got to do with it?
CFA = Who are they?

[verulamium] 13/1/2005 08:36

Read the RNS linked above. It's suspended.

[cottlet] 13/1/2005 08:35

Phone number for info is 0207 943 0333
Haven't got time to ring today. Anybody know any more?

[haru] 13/1/2005 08:34

Eckoh technologies(ECK)

[adh0] 13/1/2005 08:33

I think the shares must be suspended, no trades at all yet. Not 100% on this though, shouldn't there be an announcement?

[chapchip] 13/1/2005 08:32

oh.......so potential takeover target........well i need £3.50 to break even so buyer if you are reading take note...theres a good chap

[adh0] 13/1/2005 08:27

Doesn't actually say who is reversing into who does it! But given Durlachers size you can only assume they are the target.

[slogsweep] 13/1/2005 08:22

Are the shares suspended? No price move on announcement strange