Titan Europe Share Discussion Threads

[mikejah] 24/7/2012 10:19

Under reporting rules a shortfall of 10% would have had to be reported so the first part impact would have been less than 10%.The second part is obviously transitory as effect on profits will be more than cancelled by boost to margins if £ continues to appreciate against euro.Obviously why bid is coming now at low ball price.

[penpont] 24/7/2012 10:16

Z - in answer to your 3 questions:

1: Yes

2: Yes

3: Yes

edit - all imho of course

[zeuseq] 24/7/2012 10:02

Does anyone seriously think the bid will happen and if so will it be low ball offer after the t u today. And because of the bod will the bid be a stitch up for current holders?

[kimboy2] 24/7/2012 09:37

Quite an interesting update.

The Board's current estimate of the impact of trading-related adjustments to the Company's performance would not have required an update before the release of half-year figures in September, however, an additional effect is caused by the significant weakening of the Euro which suggests that our sterling consolidated trading profit will be materially below current market expectations although, if this was to continue, there would also be a positive effect on the overall sterling consolidated net debt position of the Company.

I take 'material' to be around 10%.

The Euro has depreciated by about 7% against the pound since March. As 50% of output goes to Europe that would imply a 3.5% decrease due to this.

That is on a turnover basis. They don't break down on a profitability basis so it wouldn't surprise me if the euro effect was perhaps 5%.

That would suggest a 5% trading effect and a 5% exchange rate effect.

I would presume in the longer run, if the euro remains depressed, the effect will be positive because their costs will be lower.

[smicker] 24/7/2012 09:20

Obviously the board will not be prepared to entertain any offer made while the company is experiencing such unusual and temporary difficulties. I wish.

[greenroom78] 24/7/2012 08:04

Should've taken the 130p when I had the chance. Thankfully I did place a guaranteed stop at my entry point after the talks news. I guess I'll be stopped out in a minute for breakeven.

[tiswas] 24/7/2012 07:54

I assume that update is preparing us for a lowball offer.

[aleks_atanasov] 23/7/2012 13:20

"Another week and we should know who owns more than 1%."

currently holdings above 1% must be reported by no later than the next day.

[alphahunter] 23/7/2012 12:08

So far the only institution that has sold some share is AXA, which they had started doing in the last six months. All they others have stayed put. Another week and we should know who owns more than 1%.

TWI's statement is disappointingly "matter-of-factly".

On a unrelated note, FIAT industrial is pondering an offer for the remaining of CNH that it does not own and likewise CNH is setting a valuation committee given the congenital nature of both Boards.

[insails] 20/7/2012 13:52

from Mefro website :


mefro wheels is a 100 % private company group led by Fischbacher family. The group also has three facilities in Germany and one in Turkey and a participation at Titan Europe Plc.

Every year 18 million wheels for light vehicles, about 3.1 million wheels for trucks and truck-trailers, 1.1 million wheels for car-trailers and caravans, and 800,000 wheels for tractors, construction and agricultural machines are produced in our factories. In 2008, we had 2,465 employees, and the consolidated annual turnover of our holding was about €500 millions.

[insails] 20/7/2012 10:55

I would think Morry would have had an idea of Mefros stance.
I agree Kimboy they will be pivotal, they are in exactly the same business, and might fear a stronger rival forming.
Maybe they would be happy with shares in Titan International in lieu,
or will they make their own play.

[stemis] 20/7/2012 10:30

Surely they would approach Mefro first? No point just approaching TSW. The board could hardly recommend a bid without knowing if Mefro are going to play ball.

[kimboy2] 20/7/2012 10:04

It is not up to him to him to accept. Mefro is the key agreement they have to reach.

[insails] 20/7/2012 09:47

Given the conjoint nature of the 2 boards,
could a thought passing from the left part of Morry Taylors brain to the right lobe constitute an approach by Titan International ?

Surely he made his mind up to accept his own offer before having to issue an RNS.

[eddie catflap] 20/7/2012 07:57

Some background..

Linky:

and a bit of comment...

Linky2:

[and1] 19/7/2012 21:26

yes i'm buying at current prices, hopefully for sale at 150+ by mid august. Board wouldnt have made this approach hoping to steal it especially with the current broker ratings, PE, Book value, enterprise value. As somebody else said this is the second attempt and the Board is unlikely to back out.
More likely price is being held down below 130 while hedge funds load up with leverage.

[kimboy2] 18/7/2012 12:30

Yes my immediate thought was a stitch up job to hand the co over on the cheap.

I notice that there was no mention of insurance. The implication of that is, I presume, that the status quo stands i.e. it is all covered by insurance.

[eddie catflap] 18/7/2012 12:22

That's quite an upbeat update on the restoration of the Italian operations. (Was cynically expecting the opposite)

[aleks_atanasov] 18/7/2012 11:55

at the last T/O attempt in Feb 2008 it was the same movie again it jumped to 160 then down to 113..... and the market was caught naked when the offer came in at low 200ish

tho this time they cant keep the market in the dark for two months becouse there are new rules in place.. something must happen till 14 Aug

[and1] 18/7/2012 11:43

Nav excl intangibes is 122p, enterprise value is almost doube current price. good orer book and future growth. This share has a broker target of 170, only recently dropped from 210 due to temporary problems in Italy. I agree with someone earlier that 200p seems a good price.

There is a puzzle though, why did the share price only rise to 130 after the news? and why didnt titan inc (nyse) rise more if they are getting it at such a steal?

i suspect if there is an offer they will have to pay around 150 which is the highest its been in recent times. That is the minimum i will be happy with....

[greenroom78] 18/7/2012 11:34

The market isn't pricing in much likelihood of a deal at the minute. I bought back into these ahead of the last trading statement and am now unsure how to play this. I only intended it as a trading position but am tempted to hang on to see what comes of it.

[aleks_atanasov] 18/7/2012 09:55

Alphahunter - i guess it was because of the crisis of 08 that the T/O didn't work out