Wolseley Share Discussion Threads

[macansy77] 06/3/2009 07:50

wrong - firm placing at 120p, Rights issue is at 40p...

[aquilla] 06/3/2009 07:37

Rights issue at 120p!

The GBP1 billion share issue, which is fully underwritten, comprises a GBP270
million firm placing at 120p per share and an 11 for 5 rights issue to raise
GBP781 million.

[ianwc] 05/3/2009 19:16

sounds to me that they haven't sorted out the terms of the rights issue yet. staying short.

[aquilla] 05/3/2009 16:11

Sinking like a stone now. News imminent?

[aquilla] 05/3/2009 12:39

This news caused the share price to dip to 167p before bouncing back up:

LONDON (Dow Jones)--Wolseley said Thursday it can confirm that discussions have been held to consider the merits of an issue of new equity.

This follows recent press speculation of a possible issue of new equity by the Company.

Any decisions will be communicated to shareholders through the appropriate channels at the appropriate time.

[ianwc] 05/3/2009 09:07

still no word. surprised these are up again this morning

[tokolosh] 04/3/2009 15:56

I will probably add to my short before the bell, should see a bit of a retrace even if no news tomorrow.

[ianwc] 04/3/2009 15:21

I went short too, at 172 pence. Going to hold and see what happens!

[tokolosh] 04/3/2009 14:05

I went short end yesterday, ouch. Damn my itchy trigger finger.....

Hoping for a fall tomorrow but not too sure now - it is not exactly a surprise to anyone.

Look at Segro today - up on the news.

[dataline] 04/3/2009 13:39

Can't see banks and shareholders supporting WOS.
Staying short for big fall on the news.

[dataline] 04/3/2009 13:39

Can't see banks and shareholders supporting WOS.
Staying short for big fall on the news.

[scburbs] 03/3/2009 13:44

Thanks Tokolosh. Pretty grim reading for WOS shareholders! Interesting to see the rumour that they tried to get a rights issue away before but the shareholders didn't back it!

[tokolosh] 03/3/2009 13:22

Link to FT alphaville transcript here:

[scburbs] 03/3/2009 12:56

Ouch. The BoD are going to look a little bit silly given their previous comments and the previous opportunities to raise equity at much much higher prices.

I expect a few directors will be departing the group as a result of this.

[tokolosh] 03/3/2009 12:27

Massive 1.2bn rights issue on Thurday according to FT Alphaville, they have a pretty good record on these....

Will most likely be in the press tomorrow.

[crosswire] 21/2/2009 08:28

FTSE futures up 15points......

Blue Monday....New Order...

[crosswire] 20/2/2009 19:53

Dow blue..............for 2 seconds only. Bummer!!!!!!!!!

[aquilla] 20/2/2009 17:34

20-Feb-09
Company:Wolseley WOS
Broker:Panmure Gordon
Recommendation:Sell
Price target:170.00p
Reiteration

[aquilla] 20/2/2009 15:24

Well the market didn't take much heed of that recommendation for long. The share price did go up to 230p but had dropped back to the 180s by today. Where will it go from here? Much will depend on the market as a whole.

[gurp] 20/2/2009 11:09

so they drop the price target (to around what it is now) & raise from hold to buy 'cos of a perceived modest recovery in over 2 years time ?????????????

& if they try a rights issue in the present situation & it goes t*ts up?

they must have missed a lot of basic schooling or an have an agenda..............

[jon182] 20/2/2009 11:01

so you recon it will go back up next week then?

[crosswire] 20/2/2009 10:29

Wolseley climbs as Citi recommends £600m cash callComments (0) Building materials group Wolseley has had a rough time in the past few months, with worries about its exposure to the troubled UK and the US construction markets, along with concerns about a possible cash call.

But its shares have gradually been reviving, and today came a bright spot as analysts at Citigroup moved its recommendation from hold to buy. Citi's Clyde Lewis believes the company should raise at least £600m with a rights issue, which should help bolster its balance sheet in time for a recovery in its markets. He said:

"The group has three options - refinance, sell or raise equity - ultimately we see the group raising fresh equity.

"The rights issue needed is a minimum £350m but ideally at least £600m - the minimum amount being needed to avoid covenant breach but with little head room. The £600m offers some comfort on covenants and gives the group some options for when trading improves.

"Refinancing is an extremely expensive option - with the banks asking and getting large up front fees as well as higher interest rates. The impact of Wolseley following this route would lead to a significant reduction in earnings in 2010. Asset sales are unlikely, without cutting into the core, to provide enough cash.

"In terms of timescale the group has until the middle of the year - to decide whether or not it is going for a rights issue. After this it needs a new covenant structure in place.

"We are upping our recommendation to a buy -as we believe the group will go for a rights issue and with a more robust balance sheet and a modest recovery in 2011 the stock looks far too cheap in our view. However, there are lots of risks in this call so we move our risk rating to speculative and set a new target price of 310p (from 325p)."

All that was enough to lift Wolseley shares by 4p to 211p.



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Back to 210p next week after a Dow bounce next week. IMO

[aquilla] 19/2/2009 21:16

The Dow down nearly 100 points more since the FTSE close. I would imagine another difficult day for the FTSE tomorrow. Holding on to my short position here.

[scburbs] 19/2/2009 13:23

US housing market continuing to struggle.

"NEW YORK (CNNMoney.com) -- Initial construction of U.S. homes fell to the lowest level on record in January, according to a government report released Wednesday.

Starts fell to a seasonally adjusted annual rate of 466,000 in January, according to the Commerce Department. That's the lowest level since the government started keeping records in 1959.

The rate was down 16.8% from December's revised reading of 547,000, and 56.2% lower than January 2008. Economists were expecting housing starts to decline to 529,000, according to consensus estimates compiled by Briefing.com."