Somerfield Share Discussion Threads

[kingdwg] 05/8/2005 15:02

Think we've lost faxxer!

[woodsman2004] 05/8/2005 11:43

....must be the most boring, long drawn out and least discussed takeover "bid" for a large company in history!

[kingdwg] 03/8/2005 14:40

It needs to finish well as well. It's tied a lot of my(short term :-)) capital up for a good while now. Rather cramped my style, that and egg but I'm still fairly hopeful this will develop into a big payday.

[cheekycharlie] 03/8/2005 13:45

I am just hoping this bid process finshes soon, either way.

[kingdwg] 03/8/2005 10:19

UBS just popped up with 9%. Last RNS I saw from them was in 2003 when they reported below 3%. Interesting!

[kingdwg] 22/7/2005 16:08

Back to 200 again then, must be getting close!

[the other kevin] 11/7/2005 15:31

Anyone enlighten me about what Lehman's are up to. Hedging or what? And what's a Long/Short Total Return Swap when it's at home?

[kingdwg] 08/7/2005 16:31

Nothing like a bit of negative from the IC, it works everytime.

[poo bear] 03/7/2005 10:48

Baugur fraud charge rocks Somerfield bid

[kingdwg] 01/7/2005 17:10

Well I'm glad I didn't bottle out when it dropped under 190, that article in the Times definitely didn't help, but it's looking healthier now.

[octopus100] 29/6/2005 14:22

For those diamond investors out there - this was posted on the AFD (African Diamonds Board) and some thinks is significant for them to start drilling shortly (DYOR) - De Wet launches Elephant Drilling Rig II

BESTER GABOTLALE
Staff Writer
6/28/2005 10:27:12 AM (GMT +2)

De Wet Drilling, a Rasesa based local drilling company, last week
launched its second giant drilling machine, the Elephant Drilling Rig II.

This feat has seen the company receiving an order for its multi-million
Pula exploration drilling machine from outside the country.

Rudie De Wet, a partner at De Wet Drilling told Mmegi on Friday that the
success of the first drilling machine launched last year and now leased for
exploration work at Venetia diamond mine in South Africa has led to
demands for the building of more of them.

The Elephant Drilling Rig II, which was completed in six-months was
commissioned by De Beers Prospecting for use in the execution of their
exploration evaluation project near Orapa Mine.

"They will be huge demands and a lot of requests," he said revealing that
work on the third rig, due to start in two weeks time has been
commissioned by a client from outside the country.

The first rig at Venetia is only expected back in the country around this
time next year and will immediately be roped in to do more work, where
it has already been booked.

De Wet said although the other mines in South Africa do not require the
services of the rig, the demand in Botswana is huge but the two machines
should be able to satisfy that demand.

"The rig itself is completely designed, manufactured and assembled here
and for this type of drilling it's the only one in the world," he said adding
that the machine is manufactured using labour from Rasesa and the
surrounding villages.

The large diameter-drilling rig, which has the capacity to drill boreholes
of up to a meter in diameter and a depth of 700meters, is crucial for the
proper evaluation of diamond reserves.

[woodsman2004] 28/6/2005 13:29

Sorry, lazyness on part!

[xjks] 28/6/2005 12:38

As of Jan 04 there were 1250 stores. (649 KS + 601 Somerfield)

[woodsman2004] 28/6/2005 12:08

The co-op pulled out basically because they wanted to buy and intergrate the business. Due to their corporate structure, it is extremely difficult for them to get all the permissions required and raise the finance. Furthermore, they will have been scared off by the problems Sir Ken has had intergrating Safeway.

Make no bones about it, the remaining potential bidders are pure highly leveraged property plays. They will be raising huge amounts of finance to buy the group then hope to sell off chunks of stores to the likes of Asda, Tescos, Sainsburys, Iceland etc. Remaining stores not already hocked up, will be sale and leasebacked.

These transactions are high risk, but IMHO there are 2 reasons for the delay in bids emerging:

1) the complexity of valuing 600+ sites and negotiating with several buyers all of who have to watch out for OFT concerns etc

2) Tactics - by delaying the bid, it may get to the stage where Somerfield NEEDS a bid.

[cheekycharlie] 28/6/2005 11:07

The CO-OP have pulled out then, I dont think a deal is worth doing at 205p.

[kingdwg] 25/6/2005 09:30

Well it is really but there was someone in bfp gave us a useful insight in the weeks up to the bid.

[maxharry] 24/6/2005 21:10

blunderbus

I think thats what you call inside info isnt it.


LOL!!!!!!

[blunderbuss] 22/6/2005 17:54

I think we need comment from peaple close to the company.

Maxharry?

[kingdwg] 20/6/2005 10:11

Can someone please say something hopeful about this situation please. I'm starting to get bored. I thought ASDA were supposed to be interested!

[grupo guitarlumber] 08/6/2005 13:01

(Adds further details from statement, comments on bid situation)
LONDON (AFX) - Somerfield PLC, the UK's fifth-biggest supermarket chain,
said it has decided to switch to Financial Reporting Standard 17 for its 2005
pension scheme accounting and that the move means its 2004 results will need to
be restated.
The move to FRS 17, which Somerfield believes provides a more appropriate
recognition of its pension scheme deficit, will mean shareholder funds for the
year ended April 2004 will fall to 699.1 mln stg from 811.1 mln, while profit on
ordinary activities before interest will be reduced by 4.8 mln stg.
Meanwhile for the 53 weeks to April 30 2005, Somerfield said the FRS 17
pension deficit will increase to 112.3 mln while its operating profit for the
year will be hit by a 6.6 mln stg charge representing a 3.7 mln stg increase
over the SSAP 24 (Statement of Standard Accounting Practice) charge.
Somerfield said while it is not possible to predict the pension deficit for
the year to April 29 2006, when it will report under IFRS, the regular pension
charges are likely to be at a similar level to the current year charge.
Further, it said it has reached agreement with its pension fund trustees to
"fix the annual cash contributions at 11.7 mln stg" a year over the next six
years to assist the gradual reduction of the pension deficit.
Turning to the bid discussions it has been engaged in recently, Somerfield
said the talks, including the provision of due diligence information, were
continuing.
However, it added that "there can be no certainty that an offer will be made
nor as to the terms on which any offer might be made".
[e-mail]
ma

[sharw] 06/6/2005 18:20

With regard to timing, FWIW the Times reported on June 2nd.:

"The process of due diligence by three potential suitors for the supermarket group Somerfield could take until the end of June or even longer, according to sources".

[woodsman2004] 06/6/2005 11:43

I think SOF should be win an award for the least interesting takeover battle for a major UK stock market company!!!

Surely there must be some news or speculation? The books were opened to the potential buyers months ago and put up or shut up deadlines have come and passed apparently.

The current share price appears to be hedging its bets - a reasonable chance of a bid being accepted in the 210-220 range, but also a reasonable chance of no deal at all in which case the share price will fall back.

My guess is that the delay is caused by issues surrounding a potential carve up of the business. If ASDA (and any of the other majors) are in the running to pick up blocks of stores, they will be sounding out the MMC. It was quite interesting to see ASDA at the weekend praising Justin King and saying that Sainsburys are about to relegate them to 3rd place. This may be nothing, but it may also be a clever "look how small we are in a competitive market" tactic.

[faxxer] 30/5/2005 22:35

An article from the Times Online sheds some light on Robert Tchenguiz:
(if the link works)

Whiz Tchenguiz lifts veil on his finances - Construction and property - Times Online

[kingdwg] 19/5/2005 16:56

Like you Bastide I'm fairly heavy in here having anticipated something was afoot just before the approaches were announced so a large percentage of my investment capital has been tied up for quite a few weeks now while other opportunities have come & gone. £220 would indeed make it all worthwhile but it seems to be sliding a bit atm.