Highway Insurance Share Discussion Threads

[ursus] 14/4/2005 20:17

the near term upside is the probable release from reserves in the next feew months - special dividend called for, i think.

[thecleaner] 14/4/2005 19:34

This company is way undervalued anyway and pays a good divi. If you do a stock screen on p/e and yield this one always comes up along with a load of companies going bankrupt. Highway is however by no means going bankrupt. In fact I expect a lot of upside in profits next year as the exceptionals should be lower and I am expecting a greater return from the management of their substantial fund.

[adon] 14/4/2005 18:48

37.5p less than Nav after results and div +7%, little downside,can't go wrong.
The question is where to now for the shareholder, sit tight for the long-term?

[ursus] 14/4/2005 13:57

it was hwy shareholders who walked, not chu (who presumably refused to raise their price).

[jhan66] 14/4/2005 13:31

kept CHU, sold HWY after announcement of talks. Always thought it would be good for both but felt the CHU was the right one to hang on to.

would consider buying HWY again, but now both CHU & COX have walked away I think I'm better off waiting to see what happens over the next couple of weeks

[little beaker] 14/4/2005 11:12

...as can be seen by the share price action today. Shame, I think the merger would have been good for both cos.

[lbo] 14/4/2005 08:53

I agree the offer by CHU subtantially undervalued Highway and not surprised talks terminated perhaps now we will get a much improved offer from another party

[tole] 14/4/2005 08:44

Termination of discussions with Highway Insurance Holdings Plc ("Highway")

Chaucer announces that it is no longer in talks with Highway regarding a
possible recommended all share offer by Chaucer for Highway.

[blu3skies] 12/4/2005 07:44

Anyone heard anything?

Why no announcement to HWY shareholders, especially regarding the CHU figures?

If this continues to slip back, it will become a bargin, or tell us something else?

[lbo] 06/4/2005 15:30

Again some large trades today

[lbo] 31/3/2005 16:02

Well we had two tardes at 39.5p and another at 39p earlier

[theberg] 31/3/2005 10:09

Ursus, personally think HWY is a long here.

[warranty] 29/3/2005 18:10

Well if this drops further on XD tomorrow it has to be a tremendous punt with a 45p offer on the table already doesn't it???

[little beaker] 25/3/2005 10:07

Yes, I believe that the HWY price may have slipped versus CHU because people believe there is a risk that the deal won't go through; this is seen as negative for HWY share price. If this weren't the case, it would be possible to short CHU and buy HWY to arbitrage.

The premium in the HWY share price was already there before the merger announcement. I believe the deal is unambiguously good for HWY shareholders and unclear for CHU holders.

I only own CHU. I believe CHU is more cash-generative and therefore more attractive than HWY, as I believe there is more scope for dividend increases going forward. However, I am prepared to accept the merger may be good for CHU mainly because of the cross-synergies it is likely to create, and therefore cost savings, brand recognition, and an increase in pricing power.

[makingheaps] 24/3/2005 16:46

Maybe the lack of news from the Highway side tells you something, ie they don't see this as a done deal so much as one option open to them.

[pvb] 23/3/2005 22:33

Who let the morons out?

pvb

[badtime] 23/3/2005 21:53

Strange cos if u read the accounts it says those on register next week.....ah i get it now...it says 29th whch is the tuesday...and with good friday/easter monday that wud accout for it..sorry my mistake..and yes ..slightly up..but then it had dropped a fraction from last week..lol

[tiraider] 23/3/2005 21:21

badtime; my monitor shows it as XD. In which case its actually up .60p today!
My broker shows it as XD as well (barclays)

[tiraider] 23/3/2005 21:19

miamisteve

thx for reply, I briefly read the CHU RNS. Still a bit dissatisfied that CHU shareholders are well informed, but not HWY shareholders.

Maybe there's a reason for that? I suppose we'll find out in due course.

As it stands though, I see no reason to accept the extra risk of a merger when HWY seems to be performing quite well on its own.

rgds
tr

[badtime] 23/3/2005 21:16

Strange to c the drop today...doesnt go exdiv till next week...chaucer share price steady so makes the deal worthwhile..mayb they'll manipulate the price down to make it ''attractive''...nooooooo of course that sort of thing wudnt happen.

Chaucer nice strong cpy..although the lack of ''premium'' is disappointing i cant c we have much choice...institutions wud have been courted b4 news was released no doubt.

[miamisteve] 23/3/2005 20:59

Tiraider - It appears to be more of a merger than a take over. Chaucer pays a healthy dividend as well ( 5% +). The idea is that there are significant cost savings and that the some of the parts will be greater than the two companies current independent prospects.

[tiraider] 23/3/2005 20:45

I won't agree to swap paper for paper. What's the point? HWY is paying a decent divi and is undervalued at its current price. I really can't see institutions accepting a paper bid either.

A golden rule I learnt a long time ago was not to accept paper, nor accept first offer. I certainly shan't this time.

Regardless, why haven't HWY announced details of the Chaucer bid?

[adon] 20/3/2005 22:14

TOPINFO

I think 65p is wishful thinking. Highway & Chaucer seem to have this stitch up last christmas. Highway suggested that there was more than one bidder. What could others offer Highway that Chaucer can't. I think there may well be more growth through Chaucer than a bid in teh long run. Even teh hurricanes in teh USA didn't put too much of a dint in their profits. Looking closely at Highway's profit, most of the money was raised was on teh investments. In the short term this is unlikely to be repeated, so I think this favours the merger with Chaucer.

[topinfo] 20/3/2005 21:22

Now that bid details have been announced can see some action this week with other predators confirming their interest, with a possible cash offer having more sway with shareholders. I think we will end up with an all cash offer of over 65p. DYOR of course.