Ms Takeover Rumours (MSI)

I did not buy this share looking for a takeover. The company has developed some exceptional products that could take them a long way.

A takeover is an interesting discussion point and clearly one cannot rule it out given the UK equity market as a whole and matters such as the age of the Board (excl Nick Bell). Certainly, given the step change in contract wins in Defence and the long term trajectory of supplying the US Navy it would seem very plausible that a larger peer would be interested in MSI given it also has valuable freeholds and a takeover would strip out the Plc cost. I wouldn’t like to see this happen personally (not yet anyway) as there is plenty to go for yet on the valuation before we get a premium bid :)

I agree the more I look at MSI it is a fine balance with wanting management to concentrate on the business and not PR grabbing like some, but a little more detail would be appreciated. There is no doubt the defence division contracts won in the last year have been astounding. Based on the profile of the board and recent shareholding announcements with current valuation I see this as a prime takeover target.

Interesting phantom share options - 100k at nil cost . Only exercisable on a takeover !