Eurodis Elect. Share Discussion Threads

[ed winchester] 13/7/2005 21:23

good post adnatrob. My view is that the deal is a done one. They were at an advance stage when the rns was issued.

As for the 'cash is tight' comment, yes its an ominous phrase so the merger is way forward for them. And as I am of the view the deal is as good as completed, the 'cash is tight' wont be material any more. Eurodis is at that tilting point where if they gain an increase in sales it will propel them quite fast into profitability and cash flow (its highly operationaly geared - with costs massively cut, any increase in sales will have a great impact on the bottom line). So merging with a partner will achieve this in one fell swoop, together with the cost cutting that would be inevitable, the combined group could be a very profitable business within a very short period time (if not instantly).

What is the question that we are all eagerly want answering, is what form will the merger materialise as, especially for shareholders.

Also, will the deal announcement flush out other interested parties.

[dyfiman] 13/7/2005 19:38

Jordaggy.... like your style ......and took much comfort from
the outcome of your calls to ELH.
Bottom line is, I think, we'll know where we are in a few days.
for those like me, who've been through two years of the ELH "experience",
this wait now is just a nano second.
Regards all.

[jordaggy] 13/7/2005 18:12

Cross, simple - who are your merging with ?? answere: Sales - we don't know who it is yet headoffice: I can't give out that information. Hey guy's pick up the phone and ring them for yourselves !! don't be shy, they won't bite you ! damit, your share holders afterall !!

[crossfirecssf] 13/7/2005 17:52

lol...Great stuff Jordaggy, thanks for coming back. If you don't mind me going on a little, how did you get the info that it would be a merger?

[jordaggy] 13/7/2005 17:35

Cross,

I spoke with sales and head office posing as an MD of a small co. concerned that I'll need to change supplier !!....I was assured that I most certainly will not need to. When I cheekily enquired as to wether they thought they were in danger of losing the jobs - I got a very emphatic NO AT ALL !!! - in a smiley voice...make of this what you will...are they simply pushing out a line - time will tell ! but if I'm a good judge of human nature I think all was said in all honesty.

[ed winchester] 13/7/2005 15:15

those that wanted to bail are out. Any sizeable buying will move the price i think.

by the way jordaggy posted something yesterday, she phoned up eurodis sales, and reported from one of the staff that its a definite merger and they were chirpy about it.

[chiansaw] 13/7/2005 15:03

Ta Ed. Was hoping WINS. They were the hoover before I left

3 v 1 BTW

Other thoughts were very encouraged to see rebound from 0.88 ish to current level on sod all buying. If, and a very big if, a few buying streaks are put together with no biggies coming in a ala Hermes etc, then I can see MMs being very short on stock. Haven't seen any bigger T sells at close either now that Av. and Hermes have gone ?

[ed winchester] 13/7/2005 15:01

I agree momentos. They will wait until they see the fine details and see if they can improve it. Reading the EW articles recently (and one posted yesterday) it certainly looks like the companies in sector are alomost desparate to find partners to merge with. If eurodis merges, others may be left wondering who to merge with.

[crossfirecssf] 13/7/2005 15:00

Welcome back Chiansaw...apparently the deal will be announced next week according to Pete, and according to Jordaggy it's "definitely a merger", other than that we're all still in the dark.

[ed winchester] 13/7/2005 14:59

welcome back chiansaw

it looks like evo who took the stock on, as KLWT's disclosure rns didnt state them taking on the 14m. At the moment EVO are on the offer so i guess it was them, and they have a couple of mill on their books.

[momentos] 13/7/2005 14:57

Any other players are unlikely to be told / know the amount of any offer yet either. So hats in ring could possibly not occur until the formal offer terms are announced.

[ed winchester] 13/7/2005 14:51

ozzy, at the moment in my opinion there is only one company they are talking to. This company must have approached eurodis and eurodis have carefully thought and believed that they are the right firm to merge with, as i am sure many a company must have approached eurodis on an informal basis for eurodis to tell them 'sorry not interested' as they feel its not the right fit. The current one would have been seen as the right type and suituable fit for eurodis hence the talks going to an advance stage and eventual conclusion.

it will be interesting to see once the deal is announced if others come forward and make hostile approach of some sort.

[ed winchester] 13/7/2005 14:46

I think its an indication that the talks have been concluded and now going through the legal formalities. Doug having thrashed out a deal, hopefully done the business and gone for a break. If pete is correct and the announcement is next week, I guess Doug will be back to present the deal to the city.

[crossfirecssf] 13/7/2005 14:46

Yes...well, nice of them to let us know, even if it was under protest. After all, we do own the company. The level of information given to ordinary shareholders by many companies is really quite appalling, given the financial committments that many shareholders make long-term. There appears to be a general mentality that shareholders should be kept in the dark as much as possible and when information is officialy presented, other than figures, which as we've seen in the past aren't immune to fudging, the language used should be such that there as many different possible interpretations as there are shareholders.

It's ever so slightly annoying. Sorry...rant over...back to work.

[greenwellsglory] 13/7/2005 14:38

is it normal for a company chairman to go on holiday when they are in merger talks.or is it an indication the talks have finished. i seems a little strange.

[0zzy] 13/7/2005 14:32

Back again...so if they had to put out a RNS, would they have to issue another if new persons appeared with alternative offers?

Or, could they keep the fresh talks 'under their hat'?

[ed winchester] 13/7/2005 13:28

shares magazine speculated (noting what KBC had to say), also the one the broad sheets also printed something. Not to mention, the likes of me phoning up eurodis a couple of times regarding the rumours regarding takeover and wanting explaination as to how they will "enhance" shareholder value, and what they meant when they said "cooperate activity" will be required for any further restructuring (in the analyst presenation).

All the pointers were there in the results and analyst presentation, they just didnt want to announce it as I believe they wanted to do that once everything was completed.

[momentos] 13/7/2005 13:23

There was no press speculation! And not that much comment on the news...

Strategic decision to reveal the interest IMO.

[ed winchester] 13/7/2005 13:11

To me Eurodis would have kept it quiet until the deal was done and dusted BUT they had to announce because of all the press speculation. As the talks were at an advance stage, one can assume they have been doing the deal for a long while, I suspect post philips rns (or even before).

[0zzy] 13/7/2005 13:00

I may be wrong (what?) but I seem to remember that mergers were announced (when all but set) for shareholders to vote. This situation was announced whilst still on-going. Is it possible that this was to set a marker for the end value of ELH or to draw out other parties and therefore the undue lengthy process is because of further talks with new persons?

[ed winchester] 13/7/2005 12:48

yes I know monica, talked to her twice. wonder if she likes cigars ?