Rpc Share Discussion Threads

[dr_smith] 20/9/2018 13:17

I don't know to what extent M&A activity has been good (or v good and masking other not so good aspects).
Jeffian, your views differ to Northern Trust.
Accounts and reality can be 2 different things, even correctly audited, so impossible for me to get a proper feel, so see both arguments.

If we assume BOD are dogs b*ll*cks and they put their heart and energy into roles for a year, then be told their time and energy is in wrong direction, it is totally demoralising, sapping energy for future progess, be it organic or M&A.
So.. I guess 2 outcomes.
1) Takeoever (and BOD probably continue in like role for new owner).
2) No buyout but s/h talks will mean BOD can continue with a better defined agenda renewing confidence and zest.
IMO

[jeffian] 20/9/2018 12:24

"I still don't know if bids were invited/instigated by BOD, or came unsolicited.
The latter carrying more weight for a follow through to my mind."

Standard Life's comments in July that RPC was "highly vulnerable" to a bid followed closely by the Chairman's trading update at the AGM were widely interpreted as effectively inviting offers and putting the company 'in play'. Whether they actually 'solicited' the current PE interest is a moot point, but PE don't need much encouragement!

Phillis, the PE guys are spending time and money on it because that's their job. The company is perceived as cheap and both the Chairman and main shareholder have hinted that it's up for grabs. Dangle a joint of beef in a shark pool and see what happens! PE are constantly researching deals in the knowledge that probably only 1 in 100 come off......but when they do, the payday's worth it.

[dr_smith] 20/9/2018 12:02

jw121 - My own notes have a pre-close trading statement 28/9/17.
Now book keeping is on compters and with dynamic links and like it should be easy to display accounts at any any time, but management interpretation and explanation and goal horizon/politics and the like are more probably reason for less frequent reporting by some co's.
Is timing co-incidental or orchestrated? I'd go for co-incidence as they can provide accounts in talks to prospective bidders (subject to due diligence etc) at any time.

I still don't know if bids were invited/instigated by BOD, or came unsolicited.
The latter carrying more weight for a follow through to my mind.

I see the 8th is a Monday - so staff of bidders/rpc may be spending the preceding weekend at all night sessions, round a board table, curries or chinese?? - in RPC packaging for subliminal effect?

IMO. :-)
Dave.

[phillis] 20/9/2018 11:48

why do you think the P/E guys are spending time and money?

[jeffian] 20/9/2018 11:31

This whole 'bid' thing is a complete red herring and I wish it had never started. Until Northern Trust began their de-stabilisation campaign, there was no question of a takeover (quite the reverse, in fact, as RPC's strategy is specifically growth by acquisition/consolidation in a fragmented market) and it only came about as a result of the Chairman, egged on by large shareholder Standard Life, seeking to support the share price. Frankly, I think the whole Private Equity 'interest' was cooked up and has every chance of going nowhere which will further destabilise the share price. In the meantime, it takes the focus of the BoD away from their proper role - running the company. I would like to see the whole thing knocked on the head on 8/10, take any short-term pain in the share price, and then get back to growing profits, earnings and dividends which is what has made this company such a great long-term hold.

[redartbmud] 20/9/2018 08:04

Maybe to help stabilize the share price in the event that a bid does not materialize?

[jw121] 20/9/2018 07:36

RNS out this morning states that the group "will publish its trading statement for the quarter ending 30 September 2018 on Monday 8 October 2018". Typically they don't publish quarterly statements, just half year and full year ones. What should be made of this? 8th October is the deadline for bids from the two suitors.

[badgersplodge] 19/9/2018 08:26

Anyone have thoughts on the possibility of an aggressive takeover? With the volume of high % shares being bought it wouldn't be hard to get 51%..
If a buyout does indeed occur, does anyone here have experience with what's likely to happen to our shares? I'm assuming it will be cash but do we think there is a possibility of QCB's? Capital gains is going to sting hard otherwise.

[cashcow5] 18/9/2018 17:46

Not really any need for rudeness Phillis.

[squidsgone] 18/9/2018 16:52

Oh dear, you are not very bright. I kept the words short, but maybe when putting them side by side to make what we call ' sentence ' might have been too much for you.Is there someone responsible who can read what I actually wrote and interpret for you? I'm afraid it wasn't what you must have understood it to be.Who normally reads things for you? Are they available?

[phillis] 18/9/2018 15:08

???
the BOD do not have to entertain an offer that does not represent excellent value

are you some kind of idiot?

[squidsgone] 18/9/2018 13:25

Although of to have two interested parties, if one pulls out then the other will have the BoD over a barrel, a mere threat of the second pulling out will see the share price go into a nosedive hence will they will be looking for a v cheap deal.

[cashcow5] 18/9/2018 12:32

I guess people will get cold feet, particularly as the bid deadline approaches.

If there is no bid then the price is likely to tumble back down again. People who bought the dip may well just choose to take profits rather than wait on the outcome.

[rhubarbcrumble] 17/9/2018 21:22

Surprised to see so many sells today given the prospect of a T/O.

[dr_smith] 17/9/2018 12:47

Cashcow5
I'm no expert but know more than you ;-)
Whenever something significant is happening for any company, I get loads of these as emails.
I believe they are merely a return from current shareholders stating their holding and I just delete them.
I don't believe they have any useful info for a PI, other than interesting to see any big names with a large holding, but apart from that just delete/ignore them.
IMO
Dave

[cashcow5] 17/9/2018 12:30

Could someone more knowledgeable than me kindly explain what these form 8.3 and 8.5s are all about please (I don't know much about takeover regulations!).

Thanks in advance ;)

[squidsgone] 13/9/2018 15:58

Phillis,Price indication I'm afraid is exactly that ..... all 'subject to' not really meaning anything. Perhaps if BOD are confident in those 'subject to' stipulations before moving forward though, a fine indication if a fine indication price!

[phillis] 13/9/2018 09:37

squids
would "price indication" be acceptable to you
the process is the same
you dont get DD until broad agreement has been reached

EDIT
there is also the question of management's stake to be agreed

[steverabet] 12/9/2018 22:46

beckers, plucking random targets out of thin air based on suspect premises is not how i invest. if no bid materialises, the share price may hit £6 thanks to the shorting piranhas, but that again will prove temporary. northern trusts target as you stated looks both suspect and specious. and even if the price bombed that low, i would check the news and the numbers to see how much upside is likely. i did get out at 830 - a 25% profit is not to be sniffed at, and after all, a profit is only a profit once its in the bank
i remain interested and will take an opportunity should it present itself

[squidsgone] 12/9/2018 16:23

There isn't actually a price until DD, it's just a suggestion until confirmed all good, and indeed until closure accounts and any warranted info is shown to be true .... all depending on the deal.

[phillis] 12/9/2018 15:58

these businesses dont come around v often
be sure P/E will want it
when they get to a price the BOD can recommend then DD takes about 8 weeks

[bouleversee] 12/9/2018 15:50

Much more fun playing the game. In it to win it.

[beckers2008] 12/9/2018 15:39

steverbet,

If there is no offer and this heads towards £6, I doubt you will want to buy any more, in fact the next stop will be Northern Trust's price target of £4.30.
Even after the spike, RPC has underperformed the FSTE 100 over a year and down over 9% for that time, not a good performance.
Interesting times, glad to sit on the sidelines for the time being.

[squidsgone] 12/9/2018 12:47

Have to say, this seems like a decent play from the BoD to clear the decks wrt adverse comment which will just hang over them until blasted away ... after all, they don't need to recommend any offer - it just needs to be a half decent one that clears the reporting as good.

[steverabet] 12/9/2018 12:38

beckers i will take yours off you for £6 happily. the problem with commenting on short term price movements is that it can come back to bite you. viz your 7/9 'rpc is down 21% on the year' - well its not now is it