Trans Balk Inv Share Discussion Threads

[blowson2000] 22/11/2004 18:32

Market doesnt agree with whoever they were.Down to 83p to sell tonight.

[topcar] 22/11/2004 13:47

somebodys confident, 4.5 mil cfd,bought at over 86p,through barclays on friday.

[tonester30ccfc] 22/11/2004 12:00

Could anyone advise on timescales for further info on the bid? At some stage TBI need to come to the table and declare the full details of the offer

[topcar] 21/11/2004 18:43

Good,because a split up value is around £1.10,and that is fact,Dont take my word,ask gartmore,jo hambro,Dermot desmond,who will probably pushing for a breakup,unless the bid is a lot higher,just look at the investmant that cardif,for eg,as had in the last three years,owning a airport their,i think you no what iam getting at,so lets look,cardif,belfast,london luton,all for around 600mil,earning 40mil a year,with airtrafic set rise sig,then all the other bits and bats they own.

[gerryl] 20/11/2004 23:42

TBI are about to be split !
G

[gerryl] 20/11/2004 23:40

BAA are moving in. Through an anomous broker. Look for big price hikes up to Dec IMHO

GL

[tonester30ccfc] 20/11/2004 22:58

Anyone have an inkling on the buyer?

[tonester30ccfc] 20/11/2004 22:58

My view is that there is at least 5 and maybe 10% left in this. I can see no other explanation for 16m buys on Friday. The offer price has been leaked and there are a few London boys greasing their pockets

[topcar] 19/11/2004 16:50

i remember back in august 2000,city boys predicted bid of 1.20,shares ran over a £1 back then,pulled out over control of luton,things are a lot diffrent now.they dont make many new airports nowadays.

[topcar] 19/11/2004 16:36

tone, i agree having done a bit more homework,and topped up at the death 4 29pm

[tonester30ccfc] 19/11/2004 15:33

Topcar,

The price at the time of the purchases was 85.5-85.75. The price paid was a smidgen over 86. I assume therefore that they were buys and that a premium was paid for T20 say, allowing the buyer to sit and speculate whilst TBI get their act together and make an annoucment regrading the offer.

On the assumption that these are buys, total buying today totals 16m playing 4m sells. I'd hazzard a guess that the markets have carried out their own calculations, decided that the offer is north of 90p, and are punting on there being more legs in this.

For what it's worth, that's certainly my opinion, and I'll be holding until the share gets over 90p before contemplating offloading

[indomie] 19/11/2004 14:22

19 November 2004

TBI plc ('TBI')


In accordance with Rule 2.10 of The City Code on Takeovers and Mergers, TBI
confirms that it has 558,925,576 Ordinary Shares of 10 pence each ('Ordinary
Shares') in issue and options outstanding in respect of 22,123,998 Ordinary
Shares as at the date of this announcement.


Alterra must be very happy at the moment! Their 15m shares were valued at around 72p a share!!! Except........

"Alterra has agreed not to dispose of the TBI Shares
received as consideration for a period of three months from Completion."

I bet they are pressuring Mr Brooks for a sale then!

* 580 Million Shares according to the 2.10 Announcement - But does this include the 15 Million shares due to be issued to Alterra?

TBI are also £125m in Debt and have a £13.5 Million Pension Scheme Deficit...£1 a share would therefore take the take out price for this company to well over £700m! Perhaps some of this will be dependent on the potential bidder securing the lease extension at Luton?.....

[topcar] 19/11/2004 13:09

are they buys,how do you no,surely price would be up,good to see a lot of long positions are still open,short positions closed.

[tonester30ccfc] 19/11/2004 13:00

6m buys in the last hour at or around the 86p mark. Word must be out about the offer price, and given these trades, IMO it would be safe to suggest a figure well in excess of 90p

[tonester30ccfc] 19/11/2004 09:55

No more than Welsh wine bar chat, although to date it has been reliable

[gregory0106] 19/11/2004 09:51

Serko1 - good point well made, but hopefully 24 years is plenty long enough for TBI to either 1) successfullt negotiate new lease etc & 2) by then someone, perhaps the current interested party (whoever they are) to have taken over.

Tonester - I am new to this thread, the gossip you talk of - who/where is this from. Do you truely have the ear of someone inside??

[serko1] 19/11/2004 09:47

tonester30ccfc,

that is if the lease is succesfully negotiated. what's to stop the council saying, thanks very much for upgrading the airport, but we'll run it ourselves in 24 years time. Or alternatively to auction the lease of so TBi either have to pay through the nose or lose their only significant asset.

[tonester30ccfc] 19/11/2004 09:35

Telegraph article is interesting. My understanding is that TBI are negotiating on an extension to the Luton lease, and that when this is concluded, it will add significantly to the asset value. This has been key in the valuation and should not be underestimated in the take out price. This price will be north of 90p and there is some way to go yet

[tonester30ccfc] 19/11/2004 08:07

Still here guys. Significantly worse for wear care of beaujolais day. Gossip suggests hunch was right. Offer significantly north of 90p. I'm holding. Lots to go...

[lbo] 19/11/2004 00:44

Todays Telegraph says £1-1.10!



TBI takes off after approach
By Christopher Hope, Business Correspondent (Filed: 19/11/2004)

TBI shares surged to a three-year high after the airports operator, under pressure from activist shareholders to be broken up, said it had received a takeover approach.

Analysts immediately suggested that potential bidders, which could have to pay up to £600m for the business, could include Australia's Macquarrie Airports, which recently invested in an airport in Belgium, or Hochtief, the German construction group which walked away from bidding for TBI in January.

Speculation has been swirling around TBI, which owns Luton, Cardiff and Belfast International airports, since it was revealed last month that investors controlling 20pc of its shares were pushing for the company to be broken up.

TBI said in a statement : "The board of TBI notes the recent share price movement and can confirm that it has received a preliminary approach which may or may not lead to an offer. Discussions are at a preliminary stage and there can be no assurance that agreement can be reached."

TBI's shares closed up 9.75 at 85.75p. Analysts have been divided on TBI's break-up value. While some have said 80p a share, some of its investors want 100p to 110p a share, if a premium for full control of the airports is included.

TBI has become increasingly attractive to a bidder after a flurry of corporate activity. A key move was its £78m acquisition of a 28pc minority holding in Luton airport three weeks ago.

The minority holding has traditionally been seen as a poison pill for a bidder because Luton is such a key part of TBI's business.

TBI also announced this week that it had started negotiations with Luton borough council about increasing its 30-year lease (there are 24 years left to run), as well as selling the Hilton Hotel in Cardiff to raise over £28m.

TBI has also sold its airport services in America and has pledged to offload three Bolivian airports by March next year.

Keith Brooks, TBI's chief executive, angrily denied this week that the company was dancing to a tune set by shareholders, which include JO Hambro, Laxey Partners and Gartmore.

He said: "I have no problem with the shareholders. We are doing nothing different. They only came on to the register three months ago. All of this was planned."

[maestro.] 18/11/2004 21:05

just shows what a bunch of prats Cazenove are...no wonder its the Queens broker...this went over £1 a couple a years back on bid news and they are in a far better position now...suspect the share may fall back though on profit taking but worth buying anywhere sub 82p imho

[indomie] 18/11/2004 20:07

TBI
Sell at 74.5p recommends Cazenove (74.5p this week).
Although the latest set of results were in line with expectations and passenger numbers across many of the group's airports continued to rise, the broker feels that the shares are now considerably overvalued on a fundamental basis and continue to price in a healthy bid premium.
The company has also committed to a large capital expenditure programme at Luton airport following plans by low cost airlines to significantly expand their operation out of the airport.
Much of the cost of the construction at Luton will be met by disposals of its Bolivian airports and a hotel in Wales, but overall the broker remains pessimistic.

[indomie] 18/11/2004 20:06

Trains shortchange planes

Nov 17 2004

Rhodri Evans, Western Mail

THE HEAD of airports group TBI has criticised the new station being built to serve Wales' only international airport for having a platform that is too short.Keith Brooks, chief executive of TBI, which owns Cardiff Inter-national, argued that the platform should be long enough to take inter-city trains running between Swansea and London in a bid to make the site more accessible"I think the rail link is super, but what we would like to see is a platform that could take the Paddington train," said Mr Brooks yesterday. "The catchment of Cardiff would be hugely extended, but that requires a vision and a leap of faith. At the moment the platform is not long enough."Mr Brooks also accused the Welsh Assembly Government of failing to give the sort of assistance that had been given to airports in other regions."I have to say I am a little frustrated that we have not had the support of the Assembly Government I would have hoped for," he said. "I say that in the context of Northern Ireland where they have a route development fund. At Luton there is a new dual carriageway and a railway station which wasn't there - these things make a hell of a difference."We have not got any of this at Cardiff, and Andrew Davies declares publicly he is a big supporter of the airport."

Mr Brooks aired his concerns as TBI announced a significant increase in pre-tax profit in interim results.In the six months to September 30 pre-tax profits were 167% up on the previous year - at £24.1m.Increased passenger numbers overall helped increase TBI's turnover 4% to £107.6m.The company plans to maintain its dividend at 70p.But while passenger numbers rose at TBI's airports at Luton, Belfast and Stockholm, the number of passengers passing through Cardiff fell 4%, primarily due to the reduction of routes by BMIbaby.Mr Brooks also said yesterday that a £30m expansion scheme already under way at Luton Airport could be followed by further investment. "If we believe the demand is there we will make the investment," he said.

However, he acknowledged that negotiations with Luton Borough Council to extend TBI's tenure at the airport were "a consideration" in future plans.The £30m investment over two years at Luton will provide a new security hall and other facilities that is expected to almost double the retail and catering space at the airport.The development will provide capacity for up to 12 million passengers and should be ready in time for the annual peak in usage next July.TBI recently agreed a £78m deal to buy the 28% stake it does not already own in Luton from Alterra, a joint venture between US engineering group Bechtel and Singapore Changi Airport.Responding to Mr Brooks's concerns about transport to the airport, yesterday a spokesman for the Assembly Government said there were good reasons why the platform was not built to accommodate inter-city trains.He also refuted the assertion that the administration in Cardiff had not helped the airport as much as it should have. He said, "The routing of 125 Swansea-London trains along the Vale line would cause considerable disruption to Valley services, and would significantly increase journey times between London and Swansea."The Assembly Government has worked closely with Cardiff International Airport to attract new routes and new airlines to Wales," he added. "The £17m Assembly-funded major pro-gramme to restore passenger services to the Vale of Glamorgan - the first time since the Beeching cuts in 1964, will bring significant benefits to the airport, and has been developed in conjunction with the airport. The suggestion that the Assembly Government is "talking" and "not doing" is therefore ludicrous."Senior representatives from the airport are currently working with an Assembly steering group into the development of a Welsh Route Fund."

[blowson2000] 18/11/2004 19:10

Decided not to sell today,as the sell price fell to 86.5p. Anyone heard who the interested party is,and at what price??

[lbo] 18/11/2004 17:21

I expect to see circa £1.The Questor column in yesterdays Telegraph called it!



Some could give TBI air space

When New Zealand's All Blacks scrum down at the Hilton hotel in Cardiff this week before the weekend showdown with Wales, they will be standing on prime airport real estate.

As unlikely as it sounds, the hotel is owned by TBI, the airports operator, which yesterday said it was looking for buyers for the building, with its fabulous views over Cardiff castle.

The Hilton sale is the latest in a flurry of corporate activity at TBI. So far this year the company has sold off its airport services business and announced plans to dispose of its three airports in Bolivia by the end of March.

It has also bought out the minority stake in Luton airport, which had previously been seen as a poison pill for potential bidders, and is trying to extend its 30-year lease (with 24 years left to run).

Keith Brooks, chief executive, says TBI has long been planning this intensive buying and selling spree. Others suggest that Mr Brooks' actions have taken on new urgency since the arrival of investor activists on the share register angling for a break-up.

Opinion on the sum-of-the-parts valuation of TBI is divided, ranging from about 80p to 110p a share for all its assets, which include Luton, Cardiff and Belfast International airports.

The business itself is in pretty good shape, posting a 166pc rise in pre-tax profits in the six months to September due to buoyant trading from the budget airline customers who stream through Luton, and the lack of any exceptionals in the half.

Down 2 at 75p, the shares yield 3pc, trade on 26 times prospective earnings and look fully valued. But with aggressive shareholders bearing down on management, there is a good chance the sum-of-the-parts value could be realised shortly. It's not cheap, but TBI could be one for those who buy into the break-up story.