Tesco Share Discussion Threads

[grahamburn] 29/1/2017 18:43

Lewis and Wilson are the same age and Lewis has only been in situ for a little over 2 years.

IMO Wilson does not show the necessary abilities to run a marketing operation which is a prime requisite in a supermarket which is consumer-facing - he is more a logistics man. Ideal partnership for the foreseeable future which is, given Wilson's share lock in, at least 5 years + (may well take up to a year from here for the deal to be sealed).

[albert3591] 29/1/2017 09:16

Lining up the new man for the time lewis leaves.

[grahamburn] 28/1/2017 21:22

The presentation (on the TSCO website as well by the way) was very informative and/or enlightening on many aspects of the takeover (oooops, "merger"). There has been considerable work and co-operation on developing the rationale for it and most of it stacks up.

Not having seen Charles Wilson before (though obviously knew about him as a No. 2 in his previous roles before his re-emergence at Booker for the second time), I now concur with your comment that he may not be quite as self-confident as Dave Lewis who is a supremely relaxed and confident communicator. Indeed, towards the end of the presentation, Wilson seemed to relax more when he indicated that he was more than happy to work under Lewis - and genuinely seemed to mean it. (The Telegraph can't have been at the presentation or watched it).

IMO they should make an effective partnership as well as a good double act at future presentations, driving the synergies through without losing the identities of any of the constituent parts.

Similarly, they seemed reasonably confident that the deal will be waived through by the CMA. It was emphasised by both of them that though there has been a number of references in today's press about the effective doubling of the convenience store market "under one roof", both men emphasised that Booker only have 9 of their convenience stores under their direct control - hardly a competition issue, then. That is a relief.

Just hope that the prospective re-introduction of the TSCO dividend proves sufficiently enticing to BOK shareholders who, it would seem, have grown used to reasonable returns in recent times.

[woodpeckers] 28/1/2017 16:54

Hi graham, not sure 'large ego' is a fair description of CW (don't know DL). Have you watched the presentation that the two did on Friday morning, if not it's available on the BOK website and is really worth taking the time. The two men have known each other a long time and though CW could be described as obsessed about work it sounds as though he feels quite comfortable working alongside DL.

[grahamburn] 28/1/2017 15:37

Doubt if Dave Lewis will take kindly to that simplistic article! Why would he have done the deal if he was on the way out?

However, assuming the deal isn't scuppered by the CMA, then it will be interesting to see how two retail stars with large egos will work together over the next 5 years.

It will either work incredibly well for the combined business and its shareholders who will be celebrating in 5 years time (Wilson's timescale?) or Richard Cousins will prove very wise for resigning 3 weeks ago. Mind you, he has a large ego himself as well as a glittering history in the catering/food business.

Pays your money, make your bets and see how the cookies crumble.....

[woodpeckers] 28/1/2017 14:02

This deal is all about Wilson. The fact that he has committed to five years is unbelievably good news for Tesco. Would love to project 5 years from now, Tesco will be a whole different company.

[o1dsmokie] 28/1/2017 09:41

If you think Tesco is a shopping nightmare try Budgen or Londis and realize it can only get worse!

[r ball] 27/1/2017 19:41

Jeffries and JPM notes out.

[tenapen] 27/1/2017 18:00

The weekend papers may have something to say about todays RNS's !.

[supermarky] 27/1/2017 17:51

Cushty news from Dave and the gang

[portside1] 27/1/2017 16:45

believe by my info it will now go up

[staylow1] 27/1/2017 15:37

I heard the news and came running... But only to hear Portside being positive! You love Davy boy now don't ya :-)Good look guys, sound good.

[portside1] 27/1/2017 15:33

would of thought that on the news these would now be up around 34p but they are not

[alphahunter] 27/1/2017 14:57

by Olaf Storbeck

German retailer Metro Group has an unlikely new investor relations champion: Tesco’s Chief Executive Dave Lewis. Not literally. But as Metro prepares to ask shareholders for permission to split up the company, its British peer has shown through a deal of its own that there’s a strong valuation case for doing so.

Metro boss Olaf Koch wants to carve out the group’s consumer electronics business and focus solely on food wholesale and retail. What remains will be not dissimilar to Tesco after the 3.7 billion pound purchase of UK food wholesaler Booker Group it announced on Friday, structured as a cash-and-share merger.

Yet the two companies’ investors aren’t quite in sync. After the boost in Tesco and Booker’s shares to account for the market’s view on the tie-up, their combined enterprise values by late morning on Friday were 27 billion pounds. That’s 8.4 times their forecast EBITDA for the next 12 months of 3 billion pounds, according to Eikon, after adding in a considerable but maybe conservative 200 million pounds in forecast annual pre-tax synergies.

Metro’s wholesale business makes an EBITDA margin of around 5 percent, a quarter above Booker’s. It’s true that Metro is operating in different markets. But its own valuation is less than five times forecast EBITDA. Perhaps Tesco shareholders are too excited, but Koch can now argue that his own are being too glum.

[ddav] 27/1/2017 14:46

I've added 10k2 let's look forward to dividend.

[portside1] 27/1/2017 14:24

well have added 30k worth today lets hope for better ends

[portside1] 27/1/2017 14:22

off topic . all german benefit agents told not to speak to migrants with no skills
and to tell them no benefits and try another eu country . facts not fiction its all done by silence ignoring the migrants and not talking to them once they hav told them to leave and police to remove them from the building

[diku] 27/1/2017 14:05

Now Tesco will squeeze suppliers even further....

[freedom97] 27/1/2017 14:04

Hopefully this is just the start of a gradual climb in share price Divi's next year too hopefully. ;o)

[hectorp] 27/1/2017 13:22

well done TSCO

[diku] 27/1/2017 13:12

porty power..

[portside1] 27/1/2017 13:11

can not see any reason to stop the merger

[ladeside] 27/1/2017 13:06

Porty, We have a mcap of £17 Billion, I'd say a 10% increase on this news was massive.
We're not some mickey mouse AIM player who gets a 70% increase on a positive RNS.

I do take your point that we're only back to where we were a few weeks ago, however I'd put that down to sneaky goings on behind the scenes as opposed to any real weakness.

As I've mentioned earlier, everyone seems to be overlooking the Divi news and that's massive as it will bring lots of the big players back on board.

As Yazz once said, "the only way is up".........