Titan Europe Share Discussion Threads

[tiswas] 07/9/2012 16:43

With the consent of the Independent Directors of Titan Europe and Arden Partners, Titan Europe's financial adviser, the Panel Executive has agreed to the posting of the Offer Document by no later than midnight on 14 September 2012.


Quelle surprise!

[alphahunter] 07/9/2012 10:37

China has just given the green light for a new stimulus in infrastructure, totalling 2% of GDP.

[kimboy2] 07/9/2012 07:20

Or maybe not.

I think they have a month to get the offer document out which would be Monday at the latest.

[kimboy2] 06/9/2012 13:31

We shall soon see. I am expecting the interims tomorrow and the offer document will follow on Monday.

I am expecting them to see huge dangers at every turn.

[greedy rooster] 06/9/2012 12:51

Mefro have been quiet for a couple of weeks - they hold the cards and maybe enticed into a counter offer or could simply rollover and take TWI stock. Either way, the market does not see the former given the current price.

[insails] 06/9/2012 10:43

Offer now equates to 117p

[alphahunter] 04/9/2012 13:26

I am not sure that a company under offer can give a formal outlook under the take-over panel rules. TWI forced TSW to make that outlook before they made a formal announcement.

[2andyman] 03/9/2012 11:54

Does anyone know of any reason that Mefro do not have a director, or 2, on the TSW company Board?

[kimboy2] 03/9/2012 11:33

Well I presume the timetable will be to issue as pessimistic an outlook as possible and then immediately get the offer document out. That was the format with the profit warning/offer.

Basically IMV it all comes down to if Mefro have made an irrevocable undertaking then they will get it at this price, and if they haven't they will have to pay more.

I think they will pay more, and hopefully Mefro will come to the same conclusion.

[alphahunter] 03/9/2012 10:59

Look at Glencore / Xtrata.

The active institutional investors that will vote against the take-over announced publicly that they would seek to change the latter's BOD should the financial mecano fall through.

[tiswas] 03/9/2012 09:59

Yep, and how negative are they likely to read??????

[kimboy2] 03/9/2012 09:37

Talking of which we should be getting the interims this week.

[2andyman] 03/9/2012 09:04

I no longer trust the managenment of TSW. If the bid fails the whole lot of them should go, including Akers, and a new board that represents all of the shareholders appointed.

I found the below on Wikipedia intersting.

From Wikipedia – 'Takover - Strategies'

Takeovers may also benefit from principal–agent problems associated with top executive compensation. For example, it is fairly easy for a top executive to reduce the price of his/her company's stock – due to information asymmetry. The executive can accelerate accounting of expected expenses, delay accounting of expected revenue, engage in off balance sheet transactions to make the company's profitability appear temporarily poorer, or simply promote and report severely conservative (e.g. pessimistic) estimates of future earnings. Such seemingly adverse earnings news will be likely to (at least temporarily) reduce share price. (This is again due to information asymmetries since it is more common for top executives to do everything they can to window dress their company's earnings forecasts). There are typically very few legal risks to being 'too conservative' in one's accounting and earnings estimates.

A reduced share price makes a company an easier takeover target. When the company gets bought out (or taken private) – at a dramatically lower price – the takeover artist gains a windfall from the former top executive's actions to surreptitiously reduce share price. This can represent tens of billions of dollars (questionably) transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a golden handshake for presiding over the fire sale that can sometimes be in the hundreds of millions of dollars for one or two years of work. (This is nevertheless an excellent bargain for the takeover artist, who will tend to benefit from developing a reputation of being very generous to parting top executives). This is just one example of some of the principal-agent / perverse incentive issues involved with takeovers.

[tiswas] 03/9/2012 08:44

I must admit that I do not feel as confident holding these shares should the bid fail as I now view UK management very differently. I certainly do not want to hold the US stock because of the corporate governance issues flagged above.

A decent spike and I think I will be out.

[and1] 30/8/2012 10:43

i see why the market is losing interest... this will fizzle out. i also see why the company shares are so undervalued with a bunch of nodding donkeys running the show.

[tiswas] 29/8/2012 07:51

You couldn't make it up.

Can anyone else envisage the American in Fawlty Towers saying "You tell those limeys they are only getting one share for every 11 of their girlie shares and if they dont hurry up and agree I will come over there and kick their limey butts!"

8:)

[kimboy2] 28/8/2012 12:53

The Grizz;

[smicker] 28/8/2012 12:20

For information, Richard Griffiths has been selling down his holding and now holds approximately what he held before 18th June when he bought 2 million ish at approx 107-108. He has sold these at 120p plus so it is possible he is topslicing his holding in case an offer does not succeed rather than selling out completely.

Edit. I would have thought if he wanted completely out he would have done that via a single transaction

Looking at the original RNS when he went above 3% he acquired these at approx the same price though it is impossible to tell how many he bought at that time.

[insails] 27/8/2012 16:39

I imagine the US drought will hit US farm equipment sales hard.

[kimboy2] 24/8/2012 14:27

Our former 'independent directors'.

I presume they are all trying to produce as gloomy an outlook as possible for the interims to support the bid.

[davidosh] 24/8/2012 14:06

I wonder what our independent directors who are recommending the offer have to say about this highlighted corporate governance at Titan Inc especially as they are recommending we take their shares in the company!!

[tiswas] 24/8/2012 12:40

Good find Eddie, certainly something to think about for those who may be reluctantly accepting shares in Intl.

[eddie catflap] 23/8/2012 21:07

Interesting snippet on Titan Intl.....

As I said, there's a lot to like, so why did I opt not to add this one to my watchlist? Quite simply, management. The CEO, a former Republican Presidential Candidate, has been running the firm since 1990. He has a board of directors that has tenure dating back to at least 1999, so it's not exactly independent. He seems to run the place like a one-man show, though he hired a CFO from the movie industry two years ago. His sister, who is 64, is General Counsel (since 1994). He paid himself a $2mm bonus, 10X what the CFO earned. For 22 years, only 1.5% ownership seems trivial. His sister, one of the highest paid execs at the firm, owns only 7K shares. The new CFO owns less than 3K. OK, enough. I respect what he has done, but I don't like corporate governance here.

[strollingmolby] 22/8/2012 08:55

Another 300k for Carlson Capital yesterday, takes them up to 2,457,629 (2.8%). Will they continue to acquire rapidly??

[and1] 21/8/2012 16:55

TWI price is hopefully starting to move up reflecting that if the deal goes through they are getting about 15% equivalent of their combined market cap for free if they give 1 TWI share for every 11 TSW. ie a share price of TWI around 25$ is still quite cheap. That will put TSW only at 145p.
I think with the possibility of Mefro bidding and a rise in TWI shares to 25$ it may be worth holding on for a TSW price between 165 and 145p.
Fingers crossed!