Mediwatch Share Discussion Threads

[barrywhit] 08/11/2013 13:21

Ladybird,

PS was in India last week and left for US on Monday I believe, so business as usual at MDW.......Mark Hughes would be dealing with the DD etc....but i'm sure has daily conversations with PS....

[troutisout] 08/11/2013 13:20

ladybird,
In all these years and all your comments, you have never quite understood that PS is mainly US based, as that is where the bulk of the business is.

Trout.

[dorset64] 08/11/2013 13:16

ladybird I would see that as a positive. DD is mostly done away from the business apart from the on-site visits etc. but if PS has such important meetings that he still needs to be at, and with the suitor knowing/allowing him to go then that too gives the impression that things are moving ahead within the co.

[ladybird1] 08/11/2013 13:05

Interesting to read that, trout. No doubt arranged well in advance. Not entirely convenient(!!)but Hughes would in any case be bearing the brunt of the detailed work and modern communications make a huge difference. Even so, it can't help. Is PS back now, do you know?

[troutisout] 08/11/2013 12:16

Ladybird, you make a good point about executive time and effort, it would seem that the BoD have been very busy with the MDW business, PS has been in several continents over the past fortnight, working on new markets and promoting our products.

Trout.

[troutisout] 08/11/2013 12:10

Hi M4gs,
I tend to agree with your synopsis, the only downside I see is if Laborie felt there wasn't anything worth making an offer for and judging by the time that has past, they still see something here.
At the end of the day Laborie have been acquired by Audax which had funds available to it to buy MDW a hundred times over. Audax's stated aim is to consolidate Laborie's position through organic growth and bolt-on acquisitions, the takeover of MDW was always a likelihood as soon as that was stated, as MDW is a direct competitor and also has several products that Laborie could use to widen their range. It may be that Laborie don't want the Biochem side and they may look to sell that on to someone else, that worries me, as I would like to see the best price for Biochem for us not for Laborie selling it on.

We have a little over a week to find out.

All the best

Trout.

[troutisout] 08/11/2013 12:04

Barry, they do seem to have shares, 350k at 4.41p, however the upping of the quoted offer suggests they don't really want to advertise it.

More spread widening, I'm afraid...

Trout.

[barrywhit] 08/11/2013 11:59

Cheers Tissue...........

[tissueboy2] 08/11/2013 11:58

Someone has some shares Barry apparently. Barclays will let you have 100000 at 4.12 or 200000 at 4.41.

[m4gs] 08/11/2013 11:29

Gents,

If any of this has been discussed before than apologies as i've had little time to follow the posts. However, there are quite a few positives here:-

- another company has an interest in MDW - its not just us - Win
- they bid high enough and we are all happy - Win
- they dont bid high enough for the BOD or majority but at least an external has done due diligence on the company and have made a bid - Win
- they dont bid high enough and we continue to hold the shares - most people here have been and will remain in for the long term and most think that mdw has turned a corner - Win
- they will have been doing the DD for some time and havent pulled out yet - Score draw at present

I hope that makes some sense. Maybe "position Talk". However, as one of my mates says regularly... "having kids is a great thing"....he has 5!!

Best

[ladybird1] 08/11/2013 11:20

Thanks, Dorset. Interesting few days to look forward to.

[dorset64] 08/11/2013 11:04

Ladybird, looking back at the initial RNS you could be right in that DD had started before the release, as MDW stated the reason for the release was solely down to the movement in the share price as opposed to an initial approach by them.

[barrywhit] 08/11/2013 10:48

Not really ladybird, just a shame we don't have a few more buyers though...

[ladybird1] 08/11/2013 10:42

Would you 'make a book' at this stage, Barry?

[barrywhit] 08/11/2013 10:40

I see the MM's have no shares to sell, they can't be holding a lot if any...imo

[ladybird1] 08/11/2013 10:39

trout Yes, don't disagree at all. Purely tossing what is, in fact, my quite strong but instinctive view into the chat. It has no 'weight'.

[ladybird1] 08/11/2013 10:36

Dorset With respect, I disagree. The DD appropriate to a deal is focussed narrowly on the selling company, the integrity of the its Books and the representations made by its Board as to the operations of the Business. The market & competitors are outside the scope - purely a matter for Laborie. They will surely already have a clear mind as to why the want MDW.
As to fees, MDW will no doubt be racking up approaching a 6 figure sum with their professional advisers, but their role will again be focussed narrowly.

Quite feasible that a bid would be made subject to further verification, of course, given a fixed end time date, but that would necessarily be narrowly defined. Had that been the case, I would guess any offer would have been posted by now, subject to... The odds, to my mind, are on a 'clean' offer, subject to acceptance, or at worst an agreed extension of time if needed for final completion of the work.

[p1nkfish] 08/11/2013 10:31

It looks like Laborie have the right to take this to the wire before deciding whether or not to make an offer. It is in their interests to do that and that's what I think they will do.

[troutisout] 08/11/2013 10:25

ladybird,
I don't know what to think, my chips are down and we will wait to see, I have a pass for the duration so if there is no satisfactory outcome I will remain invested.
My only concern is that PSAwatch may not get the full credit in any takeover at this time. I would hate to see that not appreciated in any offer, as it is the thingthat has kept back the profits of this Company for may years now and as such has led to the suppressed share price It is very close to getting real traction both in sales and also approvals, this needs to be taken into account.

With regards your other comments about the time spent so far, I tend to agree that they must still have some common ground or talks would have ceased, if an offer is made then it would have to be agreeable to the BoD as they hold a blocking 27%, the final decision will rest with the remaining shareholders and that is going to be harder to swing as there are so many PIs.

[dorset64] 08/11/2013 10:22

Should an offer be accepted in a few days time, the deal itself will not have completed. DD on a company of this size & most notably various global locations would take at least 2-13 months if done properly & that is being quick.

They will now be looking over the accounts by paying a fee to do so which, in itself should be at least £100-250k, and if a deal concludes they then take this sum from the total amount or if it fails, they lose it. I sincerely hope they have charged an upfront fee as I do know of a couple of unscrupulous characters in business that offer their services to perform DD on a company's competitors, for a fee, with no other intention other than finding out their market strategies, customers, order book & direction. Shocking really but business is business.

[ladybird1] 08/11/2013 10:14

A very good summary trout, if I may say so.

The elapse of time inevitably fuels doubts. Myself, I increasingly think you might well look at it positively.

The two parties must by now have broad agreement as to likely price, or a fairly narrow range. Talks would otherwise have ended some time back. As a small company, even with no audited numbers for a year, DD would be a reasonably compassable exercise, albeit bitty because of the geographical spread, particularly the need to keep the US management onside. My guess is we are looking at a clean offer, subject only to acceptance rate (90%), the detail taking up the time. Sorting it all out, however, no doubt not helped by the time zone differences & perhaps even the commitments of MDW Board members who, of course, are focussed elsewhere in busy lives.

Interesting week to come.

[troutisout] 08/11/2013 09:29

Morning all,

greedfear, how would you expect 5p+ on the bid, other than if an offer was made above that?

There is very little buying and the majority of buyers are restricted with rule 8.3 disclosures and although they could buy some more, probably can't be bothered with the hassle.

There is no new interest in this share even with an offer approach, people weren't buying at 2.5p so why should we think they will at 4.25p?

I believe this could still see an offer and the share price would immediately be re-rated up to that level and after years of the share price declining the upturn will only be felt by those that got in at the bottom over these past two years. A shame really but you can understand why those sitting on the fence may feel the horse has bolted and they missed out.
At the moment MDW is a binary bet, Offer made or no offer.

If an offer is made then at what premium to current price?

If no offer, then circumstances of the lack of offer or the rejection of an offer and trading update will determine any fall.

Difficult to know what the sums are I still believe there is more to the upside than downside but it is still just a binary bet at the moment and one that has just over one week to run.

Trout.

[greedfear] 08/11/2013 07:50

Good morning all.
Expected 5p+ on the bid this week.
So this is going to be a fantastic day! No doubt.

[barrywhit] 08/11/2013 07:47

Morning All,

[leedslad001] 07/11/2013 15:09

Should be just getting out of bed in Canada lol will news come on an afternoon!
Anyway off to see bad grandpa at the pics hold the fort.