Tomkins Plc Share Discussion Threads

[clem] 25/7/2000 20:07

I hate buybacks. They always depress the price. The buyback screws up liquidity in the market and its a message that says, 'let me give you your money back, cause we cant use it.' It also lets the unbelievers out at the cost of working capital for the faithful.

I hold this share and it seems obvious that while the managers know how to run businesses they dont know how to maximise shareholder value.

Lots of value locked up here, but it seems unlikely to be released by the current crew.

Roll on new management, then you'd see the price motor.

[pw] 25/7/2000 18:28

Two buybacks announced today another 7m shares are being cancelled.

If you look on the trades list for today you will see the last declared trade of 3m.

[pw] 21/7/2000 10:51

Roaring away today, up another .5p as I speak and the order book is full of sales, Strange.

[wickhams fancy] 21/7/2000 09:41

The debt reduction part is possibly more pertinent than the buy-back in the longer term. Company seems to be consolidating on its strengths and moving away from the "diffuse conglumerate" tag that moved it out of favour with the City.

A couple of years ago, when share price was above 300p, it seemed to be fair value and it will be interesting to see how far it recovers towards that sort of ballpark

[moneybags] 21/7/2000 09:10

Up two pence.......Now we are motoring....!

One of these days they will start buying it again.

It had a decent run at the last buyback.

Regards , Moneybags

[pw] 21/7/2000 08:58

Dividend 17.45p / (Percentage of shares to be bought back) = New yield = quite large me thinks.

[pw] 21/7/2000 08:58

Chart that!!

[pw] 21/7/2000 08:41

On a market cap of £2b, Though a small caveat that this may include buy back of preferances. Either way with a well supported dividend yeild approaching 10% this is an absolute no brainer.

The Board of Tomkins PLC ('Tomkins') announces that it has entered into an agreement to sell Tomkins' European food manufacturing businesses ('RHM Europe') to Doughty Hanson & Co ('DH') for £1,139 million. Total proceeds from the sale of Tomkins' food activities will be approximately £1,227 million. This includes US$132.5 million (equivalent to £88.3 million at an exchange rate of £1=US$1.50) from the sale of Red Wing in the USA, which was completed on 14 July 2000. An Extraordinary General Meeting will be convened to approve the sale of RHM Europe.

Share buy back

Tomkins intends to return up to £700 million of the proceeds of the disposal of RHM Europe to shareholders by means of a share buy back programme, which may include convertible preference shares. The balance of the proceeds will be used to reduce borrowings.