robb - if you are on the app, try this :- |
Times business section today highlights L&G as a possible target of activist investors a la Elliot Management |
25 days & counting to FY results on 12/3 👍 |
Skinny I was referring to post 7867? re Activists ...Ah Jam62 has answered Ta |
“Meet the activists” is at the end of a long article in today’s Times |
The previous post - mentioning Aviva ? |
Skinny Where was your last post taken from? |
Bought back 10k and will sell again just prior to the XD as the XD drop will exceed the divi. |
Guys
Please keep up
hxxps://www.morganstanley.com/disclosures/morgan-stanley-dark-pools
Trades like like that are done in the dark pools and only reported via the feeds. You have very little idea what is a buy or a sell and you don't see all the trade data. It is expensive. the data you see on advfn etc can be indicative for trades that are predominatly PI stocks but SETS and SETSMM, they are downright misleading. |
Its largely relative - I was out of pocket with AV. for years - take a look at a 25 year chart. |
I remember when Prudential and Aviva were valued similarly but Pru took off and Av. languished relatively. Now Aviva are the darling, funny old game this. From a long term dividend reinvestment perspective I would be quite happy for Lgen shares to flat line for a few more years tbh. |
"The share price at Legal & General is at exactly the same level as in January last year, when the former Santander banker António Simões arrived to add some zing to the business. Neither the strategic review of last July nor the new alliance unveiled last week with Meiji Yasuda, the Japanese insurer, have yet triggered any re-rating of the shares. The promise of £5 billion of dividends and buybacks over three years will keep some shareholders happy, but some look at the pin-up of the sector, Aviva, and wonder whether a bit of activist chivvying couldn’t do the same for L&G." |
Hi jam62.. With regard to your very helpful post 7863 (and others) your last Paragraph I think is key and relevant to where we may all expect the share price to bounce in time (265p to 270p), and hopefully higher. Thanks again. |
Kirkie101
I find it perplexing that Meiji chose not to surreptitiously accumulate in the market by using a multiple of nominee names. However, for whatever reason they decided that this route was not appropriate. In addition, ownership of the voting rights transferred from Morgan Stanley to Meiji on the 7th February, so there cannot have been any contractual commitment to acquire the holding before this date.
In conclusion, up until the 7th February there was major execution risk on the books of Morgan Stanley plus the cost of carrying the position. To take on a risk of this magnitude will require significant recompense. |
I humbly disagree on the likely cost of this, Jam62. Given where the share price is over the last 6 months, and the fact that this is attached to M&A (and the fat fees for MS that go along with that), this is much more likely to have been a throw-in to the overall package from a cost perspective - in other words, MS will have eaten the cost for this.
There's no way that the Japanese would have eaten a cost so high on the purchase of 5% when they could have bought it in the market (stealthily) over a month or two beforehand way cheaper. |
Just to add to my previous post:-
The cost of this transaction for the purchaser may have been way above the current share price.
Most options, both listed and OTC will have 2 Costs. Firstly, the exercise price and secondly time value related to the expiration date. Given the probable duraation over which the position was built up, the exercise prices will have been a function of the underlying prices that prevailed at the time of grant. Secondly, there appears to be an open-ended feature to this particular arrangement, so with no definitive date of expiry, the initial premium outlay for each of the options transactions may have been significant.
Taking all of the above into consideration I believe the Meiji purchase could have an execution cost of around 265 to 270p a share. |
Easy when you know - thanks. |
The Meiji Yasuda purchase was enabled by an Over-The-Counter call option facilitated by Morgan Stanley in the USA. Certain geographical territories are not subject to the 3% declaration rule and both Japan and the USA are 2 of those territories.
Because of the size of the transaction it’s almost certain that the call option will have been accumulated over a sustained period of time; Meiji will have paid a premium to Morgan Stanley and Morgan Stanley will have covered their potential liability by a combination of buying the underlying equity and taken out their own OTC financial instruments with 3rd parties.
Both parties breached the 5% declarable position on the same day, which makes sense. Note that Morgan Stanley USA has financial instruments for a further circa 10 million shares; my guess is that Meiji will be the counter party. |
For some reason MS gave notice on 11th February but recorded the date of the transaction taking place as 7th February. The latter date is the same date that MY gave notice of the 294,664,836 shares which matches the same number of shares stated by MS. In addition MS listed a number of other shares for a total 814,371 shares with various conversion dates BUT which can be exercised "at any time" |
nice if it headed to £2.60
Perhaps there is A.N Other buyer out there - hoovering up spare shares? |
Yes, sorry chasing my own tail - I hate the format of these TR-1s |
And when did MS acquire 5% of LGEN stock to sell it to MY, that position has never been declared?
Maybe MS has promised to sell 5% to MY, on the basis of acquiring swaps or instruments, but doesn't (yet) actually own the stock itself and now needs to hoover up that volume in the market?
Skinny it is all very well repeating MYs declared intent to accumulate 5% of LGEN stock, the rns on 10 February says they already did so.
A clear explanation please anyone? |
To me the transaction is done and dusted with Meisi Yasuda exercising the equity swap as the RNS states that with all the other trades mentioned in the RNS with varying open dates (expiry dates given) that they can be activated at any earlier time. The RNS specifies this quite clearly. Hopefully the party to activate the smaller sized options will be MY. Agree it is difficult to understand what has actually taken place but the key number of shares of just over 5% is clearly identified by MY and MS in the respective RNS announcements. |