Fayrewood Share Discussion Threads

[aquilla] 06/12/2007 20:22

Cheers, Scburbs. Looking at the announcement of holding dates I would agree... up to around 114p.

[scburbs] 06/12/2007 16:01

Aquilla, Congratulations on your profit. I have no idea on NAV's highest acquisition price for FWY shares, but I am pretty sure it is below the current market price.

[aquilla] 06/12/2007 14:01

I'm in BIO as well. I guess this makes a successful FWY takeover more likely. Anyone know up to what price NAV paid for their stake in FWY?

[scburbs] 06/12/2007 12:39

cyberpost,

Well done, congrats on your profit. Shame I didn't take a punt, but just too risky for me in the event NAV walked away, although perhaps the size of their holding could have also told me it would be risky for them to walk away given the financing position.

[cyberpost] 06/12/2007 12:03

you may like to know NAV have offered 30p cash per share for BIO.

[arthur_lame_stocks] 05/12/2007 18:36

I can't see Chris Mills paying top dollar for FWY. But he's paid cash in the past.

[stewjames] 03/12/2007 18:41

I was speaking hypothetically on the basis this is now a cash shell (I've not been following closely). It isn't. They're in discussions to sell all
or part of the company. That could easily mean they're discussing disposing of the remaining operating businesses then going into voluntary liquidation.

[betman] 03/12/2007 17:43

the article says fund manager Mills JO Hambro, they are a fund not a company so wouldnt buy with shares ?????????

[smicker] 03/12/2007 17:05

Times said JO Hambro

[betman] 03/12/2007 15:46

Good point. Do we know if this is actually a company ( any guesses on who ?) trying the takeover or could it be the Atlantic fund ?

[stewjames] 03/12/2007 15:15

However FWY is not much more than a cash shell now. You would want to buy the cash at a discount at least, equal NAV at worst and certainly not a premium otherwise whats in it for them ?


It depends how they pay. If they pay with shares, it's usually a way to raise cash more cheaply than other methods. Depending how highly their paper is rated, they could easily offer 50% premium and still come out ahead.

[betman] 03/12/2007 13:44

Forgive me if my logic is flawed but is a takeover actually a good thing for existing shareholders??
When a company takes over another, its because they believes they can make money from it. If you are buying an ongoing business, you can leverage opportunities eg on purchasing, sales , marketing etc, you can take out costs, add in new management and processes etc etc
However FWY is not much more than a cash shell now. You would want to buy the cash at a discount at least, equal NAV at worst and certainly not a premium otherwise whats in it for them ?
If the FWY management sell off the remaining business and convert to cash for returning to shareholders , we can get 100% of "our" cash, otherwise we are giving away some of our money to the buyer ???

[scburbs] 03/12/2007 12:51

Smicker, Not sure about that. They haven't concluded the Banque Magnetique deal yet and they will have various warranty/indemnity obligations under that deal and the UMD deal that the purchaser will need to evaluate.

[smicker] 03/12/2007 12:30

Surely the takeover talks will come to a rapid conclusion given that we are talking about only one business which it seems the management want to sell having been given time to line up their next career moves? One question, why would a competitor not want it? There must be economies of scale which would allow cost savings plus a low rating at this moment in time. It looks like not much more than NAV will be required to buy it

[westwell] 03/12/2007 02:52

Centipede - You're dead right about tyre pressure monitoring. I highlighted that because Dawnay,Day predicted £11m a year pre-tax profits for TRT from capturing just 40% of the North American market. Dawnay did not consider the rest of the world in their calculations.

The brokers also totally ignored the market for torque sensors which, as you say, is much more important. Profits from torque measurement are likely to be many times that from measuring tyre pressures.

But, because of the recent management fiasco over that failed Aussie merger, TRT is capitalised at less than £14m.

This low valuation won't last long. I'd guess maybe 5-to-10 minutes after today's opening. Kleeman has ambitious plans for his new company. Buying TRT at (at least) up to 50p has to be a no brainer.

[centipede] 03/12/2007 01:43

I hold both FWY and Transense and am fascinated by what has happened, and is about to happen with both shares.

The Transense story is worth looking at if you do not know about it already.

IMHO, the share price is very likely to rise this week as the uncertainty of funding and new leadership is becoming resolved.

I'd have to say however that the 'mandatory technology' refers to tyre pressure monitoring (which Transense does pretty well), where there is competition.

To my mind, the more important area is torque measurement - check out the TRT board and previous company announcements.

[westwell] 03/12/2007 01:19

Pauly/Richonly - How on earth do people know today what's going to be in tomorrow's papers? Has someone got an inside track (a "deep throat") here?

Anyway, no matter ...

Kleeman's new company Transense Technologies (TRT) looks a phenomenal investment opportunity.

TRT own breathtaking IP rights on automotive technology that will soon be mandatory in vehicles around the world.

In April this year brokers Dawnay,Day said BUY to 150p; the share price was 120p at the time. Then things went wrong.

The 68-year-old chief executive decided to bow out in a blaze of glory by merging with a private Australian manufacturing company. City institutions were not keen to underwrite his deal. The chief executive pushed on regardless. TRT shares collapsed. All the company's money had been spent on the Aussie deal. Shareholders were told there was "no alternative."

They rebelled.

(See articles in the London Evening Standard, Investors Chronicle, Daily Telegraph and yesterday's Sunday Times.)

The rebels dug into their own pockets to refinance TRT with an (oversubscribed) placing at 23p a share. An RNS this week (probably today) will confirm this.

Fayrewood's Kleeman was headhunted as TRT's new chairman.

Expect the announcement of a top flight new TRT ceo shortly.

DYOR, etc .. but TRT sure is one to watch.

[puffin tickler] 02/12/2007 07:18

No need for e-mail, you might just like to read the times....

[richonlybyname] 01/12/2007 23:15

Hi Pauly,

Not just developments at Fayrewood but Kleeman might have something happening. Little bird tells me tomorrow's papers might tell you his next company...it's a very interesting situtation.

Please e-mail me for more info: [e-mail]

Regards, Richard

[aquilla] 01/12/2007 18:23

Scurbs also from the last BIO results:
"The Group intends to manage its cash resources carefully to gradually reduce
its borrowings. The encouraging trends in both IVD and OC, and the healthy order
books, give these businesses the capability to continue their organic growth and
cash generation using only limited investment."

[cyberpost] 01/12/2007 11:15

i see your point, but the fact that they didnt deny the 30p suggestion speaks volumes. I also had it confirmed from the chairman himself, any bid would be at 30p... because the highest price paid by NAV for BIO shares was 30p...and so if NAV went ahead they would have to pay minimum 30p.. thats LSE regulations..... NAV currently hold 27% of BIO stock.

you might like to read this post :



to see why BIO would be such an attractive proposition to a outfit like NAV.

[scburbs] 01/12/2007 10:48

Interesting cyberpost, although I don't think it did say that any offer would be at 30p. It noted that this was the price in the press speculation.

"The Board of Bionostics notes the recent press comment regarding the potential
interest of North Atlantic Value in making an offer for the Company at a price
of 30 pence per share and confirms that it is in discussions with North Atlantic
Value which may or may not lead to an offer being made for the Company. There is
no certainty that any offer will be forthcoming and there is no certainty as to
the terms on which such an offer might be made."



Two sentences in the last results tell me that BIO would be an exceptionally risky purchase in the current climate and that they are potentially dependent for their future on a takeover. Final results are due out any day and in the absence of a refinancing or a confirmed takeover they will contain a going concern audit qualification as they do not have funding for the next year.

"Debt levels are above the Group's long-term target, as proceeds from the sale of Respiratory and Cardiac did not reduce borrowings to the desired level."

"Subsequent to 28 February 2007, facilities with our principal lender have been
extended to 30 June 2008."

[cyberpost] 01/12/2007 10:26

Shares in Fayrewood (FWY), the computer products distributor, jumped 13.5p to 126.5p after the company admitted it is in talks which may or may not lead to an offer being made for the company. It was also revealed that fund manager North Atlantic Value has increased its stake in the firm to 24.71%.

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you might like to know NAV are also in talks about taking over BIO. BIO announced in announced in early October, any bid would be at 30p (BIO current price is 15p).

[gengulphus] 30/11/2007 13:47

I'm not really certain what you're asking...

If it happens, the offer will be worth whatever the offer is worth - and it will include conditions to prevent the company offloading large amounts of cash on to its shareholders: all offers do, it's an elementary precaution for the offeror!

Before an offer happens, any offloading of cash on to the company's shareholders will simply reduce the potential value of the offer.

Gengulphus

[molatovkid] 30/11/2007 12:52

so if this all goes well, do we simply get the agreed price per share or any chance of a higher share price and a one off special dividend?