Premier Foods Share Discussion Threads

[30rock] 24/3/2016 00:58

Mr Kipling is a British Brand which has significant value in the East for it's novelty. Nissin has a strong market base from their product range, and the Mr Kipling Brand would be a vehicle for Nissin to break into a new market segment. This partnership bring 2 problems to McCormick's door-step:

1) its a road block to their strategic global expansion to build market share through acquisition of established brands
2) the risk/ reward ratio will be much higher/ lower, if Nissin/ Premier Food partnership goes ahead for McCormick's investment strategy

In my opinion, this acquisition is out of necessity/ survival, which makes it aggressive in nature. It would be much more costly in the long run if McCormick fails to deliver this deal. £1.20

[diku] 23/3/2016 22:34

Just like I said it yesterday...American cousins coming...MRW is next!...

[isis] 23/3/2016 21:09

I find the Nissin tie-up a bit odd as they only seem to do Noodles.

Also Premier do their won Batchelor Noodles?? WTF??

[seball] 23/3/2016 17:35

"I'm feeling bullishly confident about our future", Mr Darby said. "The irony is that during a turnaround. noone's interested while the shares are falling like a stone but when you show that you are beyond the green shoots and there is a real improvement, then others take notice."

McCormick's interest could jolt other prospective suitors into making an offer in a sector which has already seen a rash of deals as big food companies find ways to grapple with changing consumer appetites.

[isis] 23/3/2016 16:38

Still we might be jumping the Gun a bit until a formal offer is made.

[isis] 23/3/2016 16:18

Companies like Brandes Partners are scooping up all the stock for the kill:-

Brandes, Your Value-Investing Specialist.
Amid constantly changing markets and shifting investor preferences, some principles endure. Brandes Investment Partners believes the value-investing philosophy of Benjamin Graham—centered on buying companies selling at discounts to estimates of their true worth—remains crucial to delivering long-term returns. This singular focus has allowed Brandes to help clients worldwide with their investment needs since the firm’s founding in 1974.

[isis] 23/3/2016 16:12

Looks like Premier were not interested in talking to McCormick so they've taken the outside route and scuppered Darby.

[sportbilly1976] 23/3/2016 16:10

some real trade volumes coming through now...

[sportbilly1976] 23/3/2016 16:07

Aren't the 8.3 notifications just a formality though once an offer has been received - all holder (long & short) with >1% interest?

[isis] 23/3/2016 16:05

If you look at the Sainsburys current takeover going on it's the same process of hundreds of RNS's stating stock movements and positions - game over for them too.

[isis] 23/3/2016 16:03

The rise is holding up so it's looking a done deal. Need the next few days to really see though.

[sportbilly1976] 23/3/2016 16:01

a nice, risk free 10% if they are....

[isis] 23/3/2016 16:00

I think they must have sounded some holders out or they wouldn't have gone for it - even though no formal bid as yet.

I have worked in this business.

This latest Bear(ish) market has left Companies like PFD very vulnerable for value predators and there really ain't alot they or we can do about it.

On the bright side if it goes through it frees up cash for something else and I'm sure Directors won't do badly with options etc. and may even keep their jobs anyway.

[isis] 23/3/2016 15:58

The 'Arbitragers' maybe buying stock to pledge to McCormicks advisors @60p.

Once over 50% it's usually a pretty done deal.

[sportbilly1976] 23/3/2016 15:51

looking to close at the high of the day...which would signal II's are pledging stock to the offer...

going to be hard for the Board to convince them otherwise imo

[sportbilly1976] 23/3/2016 15:39

I'm guessing the Board don't own huge swathes of stock either to block

[sportbilly1976] 23/3/2016 15:28

Mgmt vs shareholders then :)

[isis] 23/3/2016 15:16

McCormick and their advisors would have copies of the Shareholder listings from the Registrar.

I have had communications from bidders even though I was in a Nominee name (not Premier).

It looks like holders maybe pledging stock already.

[sportbilly1976] 23/3/2016 14:41

looking on their website - a significant shareholder listing is not available (or readily easy to see).

Email sent to investor relations...

[isis] 23/3/2016 14:29

It really depends on the large percentage holders. The advisors would probably contact them and if they start pledging stock at the 60p level then it's probably gonna stay there.
If some demand a higher bid then they may up it but not necessarily but it certainly looks in play now and could be the endgame.

[foot in mouth] 23/3/2016 14:23

Wouldn't surprise me if they come back with a much bigger revised offer. The recent fall in the pound makes this much cheaper in $ terms.

[sportbilly1976] 23/3/2016 14:06

Anyone with experience in these situations from the inside:

does the suitor engage in direct conversation to the extent that would PFD for example say that "an offer of xxp would receive our backing"?

[isis] 23/3/2016 14:00

Unfortunately with the low valuations on the LSE predators will take advantage - and can you blame them?

Would be much happier with 70p+ after all this time but there you go.

They must have done most of the DD already or they wouldn't have bothered. Some nice brands there which could go international in the right hands.

White Knight get your Hooves on!

[sportbilly1976] 23/3/2016 13:53

seball,

"bird in the hand..." and all that though.

I reckon there might be a final offer put forwards...65-67p maybe. Got a month at most to wait...