FKI Plc Share Discussion Threads

[skyship] 04/2/2008 09:30

I'm new to this stock & extremely tempted; however if there were to be a bid I would see it at no more than 90p in view of the increasing pension deficit, high borrowings and poor cashflow. That said, they seem to have an attractive business portfolio which should be doing far better, so improved management may well squeeze far higher profitability - hence, enter Melrose.

If talks fail I suggest FKI will remain in play, so I see downside to no more than 55p. So Risk Rewars suggest 13p downside (19%) versus 22p upside (32%).

hmmmm....I usually play at 2:1; this is 3:2...

Other views welcome pls...

[scrapman] 04/2/2008 09:01

LONDON (Thomson Financial) - FKI, which makes turbogenerators, wire rope and
baggage handling equipment, said it had received an approach and had entered
into early stage takeover talks last week, the Daily Telegraph reported without
citing sources.
The approach is understood to have come from Melrose, an engineering
turnaround group that was founded in 2003, the newspaper said.
It is not clear whether Melrose plans to make an offer for FKI using its own
shares or with cash, the Daily Telegraph added.
Melrose appointed JP Morgan Cazenove as a corporate broker earlier this
month, the paper said.
On Friday, FKI's shares rose 16-3/4 pence to 67p, valuing the group at 295.6
mln stg.

-------------------------------------------------

At 295 mil , I would think a 30% premium would be in order so a bid of 85/90 would seem right

[john148] 03/2/2008 09:23

My earlier prediction of a possible takeover seems to have come sooner than expected.To early for my liking.If FKI wouldn't entertain a rumoured approach at 130p per share last year then I can't see it going for the current 68-70p.I shall be taking my 38% profit plus the divi.Good luck to those who are staying with this stock.

[mike456] 01/2/2008 21:15

You ask that question quite a lot :o)

Same answer as the one I put on the WLW thread.

Net assets will have been audited at the last year end and so will be reasonably accurate but it is based on historic cost (not current valuation) and is subject to director judgements re accounting policies, eg depreciation rates

You will need to add the profit after tax to the net assets at the last year end and deduct any dividends accrued this financial year to estimate the current level of net assets

[pickph] 01/2/2008 20:51

How accurate is the NAV on FKI....anyone!

[john148] 01/2/2008 18:33

I expect some profit taking as a full bid for company my be a long way off and of course, may come to nothing.

[flashheart] 01/2/2008 17:43

If the bid was to be around £1 it would have risen to just under that mark. There is always someone in the know before us pi's.

[lord gnome] 01/2/2008 16:35

More likely that this is an opportunistic bid while the share price is on its ar$e. Someone will hope to pick this up on the cheap. I would guess at less than £1.

[milacs] 01/2/2008 15:56

Reckon this was forced down so that a cheap t/o offer could be put on the table.

Again small investors are being right royally screwed.

M

[scrapman] 01/2/2008 14:35

would think that this must be a pretty srious bid , after the last fiasco doubt anyone would want to waste their time.
possibly a tentative bid at 75p , with a take out at around 100p all guesswork of course

Perhaps dontyo could get his chum to nod in the direction of a price !!

[bird of dawning] 01/2/2008 14:30

I'm still quite heavily invested in FKI, from the time of posting no.414 (then at 50p). What should I do?....stay in and check out futher takeover news details....or take the money and run!
Regards bod

[mr.oz] 01/2/2008 12:21

FKI fkd me up !
Missed this , sold at a loss , but bought aal,ved,wsm .... so am about similar up

[robo175] 01/2/2008 12:13

Google down over 8% pre mkt open

[scrapman] 01/2/2008 12:11

just thinking , the volumes 13 mil as of now , are very low for a bid stock , of this size

[aileron] 01/2/2008 12:10

yippeeee. first northgate and now fki!

before i get impatient/paranoid, would anyone like to suggest how this might pan out?

Its Friday and the weekend may be a longtime to wait until Monday morning. Mind you a bit of press coverage may be welcome.

Best wishes

[robo175] 01/2/2008 12:04

Glad Im not short Yahoo,expect a few suicides.

[robo175] 01/2/2008 11:34

(adds detail, background and share price)
LONDON (Thomson Financial) - FKI PLC said it has received an approach from
an undisclosed suitor which may lead to an offer being made for the company.
However, the diversified engineering group said the approach is very
preliminary and there is no certainty that any offer will be forthcoming.
"The approach is at a very preliminary stage at the moment," a spokesman for
the company told Thomson Financial News.
FKI was the subject of a bid approach -- believed to be made by private
equity firm Blackstone Group -- last summer. Last May, FKI said it was
approached with an offer of around 130 pence a share, valuing the company at
some 764 mln stg. The company is now valued at around 325 mln after its shares
collapsed on a profits warning late last year.
GE Capital -- one of FKI's biggest energy and technology customers -- was
also rumoured to be interested in the company.
However, analysts have warned that FKI is not a straightforward takeover
target because it has four separate and very different businesses.
At 10.45 am shares in FKI were 19-1/4 pence or 38.3 pct higher at 69-1/2
pence.

[scrapman] 01/2/2008 11:18

quid bid would be about 500 mil , nice round figure !!

[robo175] 01/2/2008 11:16

dontyo-who did you get the nod off

[robo175] 01/2/2008 10:59

saw aticle in mail about takeover but got distacted at markt open

[lord gnome] 01/2/2008 10:58

So do you know who's doing the bidding then dontyo?

[dontyo] 01/2/2008 10:47

68.78. Got the nod to buy, pity didn't get it 2 hours ago.

[robo175] 01/2/2008 10:45

dontyo-what price you in at