Tt Electronics Takeover Rumours (TTG)

I think this is a prime candidate for takeover - its cheap for a world leader. Most likely US company will buy it

If we ignore the takeover and revisit the 14 November trading update. Revenues had stabilised, order intake was higher and progress was being made on fixing the operational challenges. Interestingly the company said 'we are now dealing with specific productivity issues exacerbated by increased volumes and product complexity' - increased volume bodes well for 2025. - 'This will result in increased productivity and streamlined processes and provide an improved performance in 2025'. The Volex offer came the day following the trading statement that demonstrated the first signs of a turnaround for TTG. Coincidence?

I'm not buying this but is there another bid in the market here? This should have tanked below 95p, but they bought it up and now it is at 111p versus pre-bid at down under 80p. I didn't think that was going to happen! Maybe the market is pricing in some form of takeover premium in the near term. Surely VLX are done here, not going hostile, unless they're going to stake build here? From a short term perspective, very clear that TTG was the winner and the market does not like VLX chasing TTG. Longer term, could be a different story. But hey ho, swings and roundabouts. All imo DYOR

Indiestu,Perhaps shareholders should club their holdings together and confirm they intend to support this takeover, hostile or not.Still think management could derail this.Cash

You can see why management are so vociferously opposed to a takeover. The combined senior team only own just over £200k worth of shares. Looking through the annual report, I can't find any clause that would entitle them to a bumper payout in the event of a takeover. By not revealing a previous all cash takeover they've proved that they are only out to save their own skins rather than look after shareholder interests.

I guess the other point to consider is that if there is a takeover by Volex then the current managers and directors know they are out of a job so not much reason for them to champion the offer. It's going hostile. I'd take the Volex shares and build the position with the cash I get. Being part of the Volex group bodes well for future growth with a better run company and leveraging their economies of scale - seems like a good option to me.