It's inevitable that no bidder would proceed without the support of the main shareholders and irrevocable undertakings, at least from the Directors. I'm disappointed, though. If Brode and Satchell can't see value above £1, one wonders about all the bullishness in the run-up to over £2 and what makes them think £1 is a reasonable offer? I wonder (again!) whether there is more to this American business than meets the eye; maybe US Govt simply aren't going to give 'sensitive' contracts to non-US companies which impacts their forward valuation?
This was one of my buy/hold/increase shares in which I was building quite a substantial holding, so although my original holding at 42p is well in profit, subsequent acquisitions at 130 and 160 are not (only the latter two in ISA, too! Ouch!). I'll come out ahead, but only just. Makes me fear for RWS as well, where I am in a similar position. The Brode 'magic' is beginning to wear off! |
When ADVT made an approach to Saatchi they offered to pay part in shares. Investors did mot want the ADVT shares and it all went sour. ADVT just didn't have the means to pay in cash in full. The approach was therefore opportunistic when the Saatchi share price was depressed. Vin Murria (ADVT) had a large stake in Saatchi and still couldn't get it over the line. Seems like a similar situation here. Institutions are not biting. The Saatchi price recovered to the offer price ultimately and some and they are doing well, likely better than if they had been part of the ADVT group. The ADVT price dropped to rock bottom although granted it has recovered somewhat, you would not of been impressed if you had taken that offer. The price action here says the market smells a rat. |
It's upto people what they do at this point. |
Surely if a higher all cash offer was to materialise from another suitor they could quickly change their allegiance. I don't get the value in the unlisted shares for shareholders. Maybe they don't have the cash to pay in readies for the whole company. Think it's going to go sour. |
A 4 week extension. Probably a positive sign the deal will proceed as the Board would not have consented to an extension without assurances from GA around their intent. The requirement for irrevocables from mgt to ‘roll’ is standard practice for private equity style transaction, as is the splitting of the Board.
So steady as we go.
A counter bid was never likely when mgt control c25% of the shares IMO. |
In discussions on the full terms of the Possible Offer, General Atlantic has indicated that the Possible Offer is conditional on the receipt of irrevocable undertakings to support a transaction and elections for the Unlisted Alternative from Andrew Brode and Jonathan Satchell. In this context, the Board has formed an independent committee to consider the Possible Offer consisting of all members of the Board excluding Andrew Brode and Jonathan Satchell.
'Possible offer' note!
This is just an extension.
I disagree with poster in 3114. |
Seems Brode and Satchel have not given this irrevocable agreement yet so surely that means it’s in play? |
No, it means there will be no bidding war even if a higher offer emerges, because agreement of the offer is 'irrevocable'. |
Or does it mean that Brode and Satchel are in but the remainder of the board has concerns so the independent committee are considering the offer without them. Could mean that the remainder of the board and other major shareholders are not happy so are considering asking for a better offer or considering an alternate bid. Hope it’s this one. |
Does that mean Brode and Satchel don’t want the unlisted shares, they want cash? General wants to lock them in but seems they want to cash out. Not looking great then or am I misunderstanding? |
I guess the 5.00pm deadline tomorrow is UK time. They would have to provide a good reason to delay insofar as they had approached LTG sometime before the latter announced the more formal/conditional offer of 100p cash and/or taking equity in their own vehicle. The T/O panel can be quite tough on any request for an extension but who knows? Taking equity in General Atlantic may have some financial/tax, and reporting benefits to some Institutions or shareholders. Personally still hope that another bidder will be attracted once we learn of GA's intention tomorrow.
Finally, I have noted that the 12 major Institutions who currently held around 46% of the LTG equity have maintained the greater part of their holding since the conditional approach was made by GA. This is a vote of confidence in management although one has no idea if they will follow the LTG board who openly stated that they were "minded" to accept the approach and the outline terms being offered. |
GA can ask the Takeover Panel for an extension providing LTG agree to it. Under these circumstances I suspect they might be inclined to, albeit reluctantly. Not long to wait. |
They have to make a formal offer or walk away,I believe. |
RNS tomorrow? |
Interesting again, to be reminded of the calibre of the institutions invested,
as they disclose their holdings and interest. |
Funnily enough Zouppy, I used to believe that,too.
'if they ever do'
But over the years I have seen they genuinely do tell a story and can predict some future likelihood.
I guess it's because we are herd animals reacting to news.
If I had my time again I would learn charting, seriously, but I have gathered a few patterns which have aided me along the way, at this point.
Yes, it might well be different here, with a potential bid, but not neccessarily.
I await with interest.
IMO |
IMO charts tell you very little here (if they ever do). share price movements mostly dictated by prospect of a formal bid by Friday with a bit of Labour IHT policy enforced tax planning on top. Should all play out in the next week. |
Does anyone else think that is a chart primed to make another move upwards?
I know we are dependent on bids and decisions but to me putting that to one side, it looks, as I say, ready for action!
Of course I could be wrong.
imo |
one week left to make the offer, I wonder if the current share price is suggesting a formal offer may not be forthcoming. |
General Atlantic look a very credible party and had approached LTG before the latter made the announcement of a possible bid. LTG with it's higher growth prospects particularly in the USA looks a good fit for the potential bidder. I guess that there is always the possibility of another bidder in which case Atlassian (code TEAM) with a market cap. of around $40 billion is a possibility. They have grown dramatically over recent years as a global software provider. However, I still think that GA has the initiative and has a larger amount of assets under management. They were established in the mid-80'ies and appear to be based in NYC with over 450 employees. The 25th October is the cut off date for a decision. Feel a bit disappointed for some holders who bought at over 100p expecting excellent growth prospects with an experienced management team in place. Have added a few more but my buy is showing as a sell which is OK! |
The decision to roll into the unlisted vehicle will depend on the terms and we won’t know those until there is a formal offer which is some weeks off I suspect.
Will not be possible to hold the unlisted shares in an ISA and I think SIPP may depend on whatever platform you are on, but probably tricky. |
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