Rpc Share Discussion Threads

[sogoesit] 31/1/2019 19:13

True Budgie but if they don't fit into the new culture, after a handover period, unlikely they will remain.
It will all be a negotiation but Executives, having "messed up" a corporate strategy, don't have much credibility in the long term, imv. Unless the bidder buys into the strategy that RPC were trying to pursue in "escaping" from the institutions.
But all these outcomes are unknowns and I am just guessing based on past observations.

Corporate take-overs are littered with the executives of acquired companies "getting the boot".... sooner or later. Look at Micro Focus recently. Managment and "culture" "risk" is high imo.

[whatsyourgame] 31/1/2019 19:06

Sogoesit - it's entirely the BoD's own fault in that they allowed the so-called Apollo DD exercise to drag on and on and on and finally after we had all been bored to death had the temerity to recommend a singularly unattractive offer.

Budgiekevin - you may well be correct in stating that under the Apollo deal all the Directors save for the CEO and CFO would lose their jobs, although this has not been stated as such. Even if true, we are not told the scale of the largesse that it is intended to hand over to the Chairman and the other NEDs which could make very interesting reading.

[budgiekevin] 31/1/2019 18:57

Bouleversee yes at least for a period to integrate RPC into Berry. Of course the CEO and/or CFO may decide to pursue other opportunities rather than join Berry. Integration is much easier when a handful of key people stay on and a easier integration means the benefits will flow through quicker

[bouleversee] 31/1/2019 18:54

Sogoesit -

Even if they make a meal of it, I don't think they'll get to the pudding stage.

[bouleversee] 31/1/2019 18:53

Are you saying Berry would have to retain the CEO/CFO? I find that very surprising, especially in these circumstances when they don't look whiter than white.

[budgiekevin] 31/1/2019 18:33

Sogoesit as I have previously posted all the BOD with the exception of CEO/CFO would have known they would be losing their jobs once Apollo made an offer. Assuming it completes. Under Berry it is no different

[gettingrichslow] 31/1/2019 18:12

Sogoesit, I think that's a really good point. But there could be more twists still to come. Another PE could come in?

[billywhizz1] 31/1/2019 16:59

Phillis is perfectly correct (post No.2954).However RPC have no other options open to them at this point. Just to clarify: LSE rules will preclude Apollo from making any interim pre-emptive offers to RPC's/BOD until Berry have submitted a firm offer to RPC/BOD. At that point the process would be allowed to proceed on a 'level playing field'. It's a strange gamble that Apollo have taken when they tendered an under-value offer in the first place, still they have done it once and it paid-off, I suppose they thought that it was worth the risk to try it again.....how wrong they were !

[stavros28] 31/1/2019 15:15

Berry know the business inside out they will deliver a knock out price .

[phillis] 31/1/2019 14:15

Apollo will sit on their hands, proceed with their offer doc and will do nothing else but wait for any offer from Berry

[bouleversee] 31/1/2019 11:55

Let's hope it goes SKY high with 2 bidders.

[billywhizz1] 31/1/2019 11:28

If and as soon as Berry make an offer, that will revert by default to Apollo, thus releasing them to counter bid, then we'll be back to the same circumstances as the original pair of bidders, but with the two distinct advantages of D/D already done and dusted and a base bid 80% already up the ladder. If these two outfits really do want this business, we should benefit if this process does kick-off.

[whatsyourgame] 31/1/2019 11:20

RPC' s share price has settled back a few pence to 794p and unless I'm missing something they now appear on the cheap side, especially if one includes only a very modest "hope value" element ... which is what testosterone-fuelled contested takeover contests are largely about.

It seems to me that Apollo cash offer of 782p is probably now dead in the water, since shareholders have seen that other potential bidder(s) are circling. Were Apollo intent on attempting to see off Berry Global before they have even made an offer, then 850p is probably the lowest figure they would need to put forward to have a good chance of success. Likewise were Berry to decide to enter the fray, then they too would be expected to offer a minimum of around 850p, i.e. 8.7% above Apollo's current offer. Either way, one would expect the share price to rise to between 830p - 850p based on the likelihood that a bid (possibly increased still further) from one or other of these two parties would ultimately succeed.

[cheshire pete] 31/1/2019 09:38

Time has passed since Northern Trust queried RPCs finances and the board reining back on their acquisition programme. Part of the 'problem' was that the hitherto rapid growth meant that with the best will in the world, valuing the company seemed to be difficult. Not to say that the board was wrong to make acquisitions. Is it any easier to value now? Berry clearly think that it could be undervalued.

[whatsyourgame] 31/1/2019 09:23

One thing's for sure ... this will bring to a shuddering stop, at least for now, those institutions who had been minded to accept Apollo's meagre offer.
Even if Berry Global were to change their mind and back off (unlikely unless they find some serious nasties in the DD), their very involvement is likely to concentrate minds at Standard Life Aberdeen and elsewhere.
RPC's share price is currently nudging 800p. Does anyone have a view on the sort of price Berry might have to come up with to become the favourite to secure control of RPC? Apollo's problem is that up to the time of making their offer they had not bought any stake in PRC on which to defray their doubtless enormous DD and other costs should they be outbid.
I wonder therefore if they were behind the heavy trading of 26 million shares yesterday, with a further 7 million dealt so far today.
I can't wait to read what Alistair Osborne at The Times makes of this latest development.

[budgiekevin] 31/1/2019 09:22

Squidsgone it doesn’t take the “inside” knowledge of Berry to know how Apollo made their gains on Berry. It’s a standard PE model of buying as cheaply as possible, strip out costs, refinance, improve EBITDA and flog it.
Boul there is no timetable yet. The clock doesn’t actually start until the Apollo offer document is issued which is normally within 28 days of last weeks announcement. This starts the clock for Apollo. Berry aren’t on a clock but clearly have to do something before shareholders vote on the Apollo offer.

[bouleversee] 31/1/2019 08:48

How long do they get before they have to say whether they are going to make an offer or not?

[jeffian] 31/1/2019 08:48

The Board and Apollo seem to have mishandled it pretty badly so far - the former by rolling over and begging for offers and the latter by taking advantage of 'sole bidder' status and submitting a 'final' lowball bid - so they've only got themselves to blame that others are now interested. Had Apollo had the gumption to submit a bid in the 8's, I suspect that would have been enough to secure the deal even if we shareholders were not enthused. Anyway, we now have a competition. Bring it on!

[spot1034] 31/1/2019 08:42

If J P Morgan's figure of 26 per cent discount to peers is anywhere near correct, that was a pretty hefty advantage to Apollo if they could have got it through at that price but if you were in the sector would you not fancy trying to frustrate such a cheeky bid and get a piece of that action? This was always a distinct possibility and Berry might be able to see even further value from synergies.

[bouleversee] 31/1/2019 08:39

Yes, that's what I thought. Cutting out the middle man. It will be interesting to see how this pans out. Hopefully it will mean rather more for us anyway.

[squidsgone] 31/1/2019 08:33

Interesting angle that Berry will know how Apollo made their money on buying and selling them, hence may be confident that there is a buck or two in the current Apollo bid.

[stavros28] 31/1/2019 08:26

A good business deserves an appropriate price tag !

£9.20

[gettingrichslow] 31/1/2019 08:25

So this is the company that Apollo bought previously then floated off, making a mint in the process? Now they're taking on their original buyers?

[redartbmud] 31/1/2019 08:21

The Appollo offer significantly undervalued the business, I hope that they now get their just deserts.
RPC board are now under scrutiny.

Just MHO