Agree with most of the above, but I assume Kestrels purchase at near 150p was before the disastrous purchase of Shinez. |
Kestrel are key. They can block a SoA completely (75% approval required) and no acquiring company will want a 27% minority shareholder that refuses to be bought out.
We are just pawns in this game.
However, it has put down a marker. If its worth ~125p to an opportunistic chancer to whom Kestrel presumably said no, then, as pointed out above, itst value to someone with progressive ambitions for the company is likely to be very significantly more. Kestrel's implied expectations must be for a margin over their highest paid price.
PS: Kestrels top price paid that I have found is 149.93p. |
Tower Brook are chancers. They probably thought "That company looks cheap. Can we pick it up cheap and make a few quid?" As soon as they realised someone else was interested they weren't interested in getting into a bidding war , hence pulled out. There's so many more fish in the sea for them to catch.
The problem with bids from investment companies is that they are not prepared to pay any sort of premium for the company, whereas bids from real companies that want the company to grow their own company are prepared to pay more since they take a longer term view. Hence don't expect any bid from Verdane to be much higher than 125p. Unless Kestrel are prepared to sell for close to 125p then this current 'fun' will end pretty quickly. |
Surely any offer hinges on Kestrel. They own 27% and been buying a lot higher. Is 125p enough for them? Seems doubtful. |
You’re presuming that TIG have rejected the offer? |
Probably have a line in the sand and will go no higher. They can't come back for a while.
BoD will be under pressure now to have a good reason to kill the other offer. |
Interesting to back out so soon, Edison say both these companies have been interested before so you would think they would have done a fair bit of research. |
Let's see if price takes a hit. |
Looks like it. |
is the other one still on |
Approach gone. |
Interesting to see that this is not the first approach from these two. |
Many institutions have bought large stakes, playing the short term game. Unless both deals have fallen through, existing holders at 118 p cannot lose for the deal to go through at 125 p , and more crucially much higher. With any other bidding games the eventual price will always be higher. I am looking for 150 p. |
Might find out early if this suddenly jumps closer to 125p indicating the target has moved up. Until then I think it will probably bounce around here. |
Further negotiations will probably see the final offer price be raised to 150 p a share. |
Discounting the time to finish any deal at 125p if that is the price. |
I'm really surprised that the share price isn't at least 125p with two potential bidders already at that price. |
Yes, you are right, let's see what develops |
K8, I think we are only at the beginning of this, a 30% premium is fairly standard as an opening bid. |
It would explain why Kestrel have not added since 9th Dec which is also the earliest date on which the current approaches could have become active. |
He got some yesterday. Must have some luck lol. |
And now Slater Investments Ltd have 11%.... |
Was hoping for more than that, at least 150. Wonder if Go Daddy will have a nosey |
I wonder if the two bidders knew that there were two bidders before about one hour ago!! |
Should imagine they will want closer to 140, looking at prices they bought at. |
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