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Don't sell your shares to Bidco. This was always on the cards. I don't see some of the smaller holders and the staff voting for 35p. I am holding out for 75p. Rates may even be negative and corporate debt will be in demand.
It looks like 35p is a very long way off now. Certainly in the short term. Those who wanted it should have taken the 34p . I decided to stay in as offer was so poor in hope of interloper or a few more pence being squeezed out of Bidco. We have made our choice and no point moaning about it now. Lets hope it does not go pear shaped and that deal falls through, AA can't refinance and are no longer a going concern. There is a risk share price will collapse completely and we get nothing. However this is worst case scenario and I hope for a 40-45p offer which I think ABC will take.
wheres my crystal ball?
but i havent sold !!!!
This is pure gamble now - a potential gain of 5p if the PEs cave in -vs- a potential loss of 20p if they walk.
Each to his own, but there are plenty of other investment opportunities out there that are likely to produce a much bigger gain, without the risk of an even bigger loss.
Not seen the Telegraph, but the Sunday Times' Oliver Shah makes it sound as though it's a done deal at 35p to Warburg Pincus and Towerbrook - and also that it's too cheap at that price.
This has been my thoughts all along, with ABC holding all the cards here I think they will want 40p+ for an agreement.
After what about 3 months of work, time and high costs are they willing to lose this deal for another few pence per share, so I think they will come back with that little extra. Maybe that was ABC 's plan all along, so let's hope it works and for 1 are still holding tight for another few weeks.
You're probably right Clemoc. I'm not much o a one for chasing short term movements so wasn't thinking about that. Either way it will be an interesting few weeks.
RG
What an interesting week. My reading is that the buyout will need sweetening before it gets approval. As such I am sitting tight. I can't see much downside to doing so given that the options are sell now for around 33p, wait and deal goes through in which case 35p or deal gets improved in which case 40p+. I suppose the risk is deal falls through but frankly that seems pretty unlikely to say the least.
RG
Thank you. Does anyone have a subscription to The Telegraph so they can copy and paste the link please?
Looks like ABC will block the deal. Short term this could tank the sp but could eventually force a higher take out price. This is going to get messy.
https://www.telegraph.co.uk/business/2020/11/28/aas-biggest-shareholder-sets-roadblock-buy-out-objection-derisory/amp/
I wouldn't be so sure. ABC/Cleveland will have a big say on if this goes through as it can't succeed without their backing
Don't waste your breath, its a done deal.
But DK has given irrevocable undertakings to vote their c16% in favour, according to the takeover RNS.
VIA JP Morgan have 16% now, so still buying, plus ABC who did have approx 20% gives 36% , now if they say NO to 35p then we should be looking at 38p -40p offer .That;s if the consortium still wants AA after all the work and costs to get to this position.
To get 35p easy win , just have to wait nice easy clean profit for them
Not worth waiting for an extra 1p and risk loosing profit and a whole lot more!
Shares and cash derivatives total nearly 20 per cent. Quiet so far, but must be in a strong position to influence how this all pans out. Their reported view back in August was that the AA could easily refinance. So,my guess is that a new bid or a higher price will come . Fingers crossed!
Yes you have to wonder why there are still so many shares being bought at / above 34p, is it that many think the consortium will find it very hard to hit the 75% mark with this 35p and will therefore have to come back with the extra 38p-40p to get this away. Surely holders like ABC have a strong position here to hold for more but will the consortium do a deal with ABC for say 40p in the back round to get this away? All more games.
I sold one third of my shares JPGE at just over 34p and am keeping the other two thirds in case consortium up their bid or an interlopper appears. Will keep a watching brief. Part of reason for sale is missing opportunities elsewhere and wanting a more balanced portfolio.
Why would JP Morgan buy 2.5 million shares yesterday at 34.15p?
I sold out yesterday. Ive done a few deals on AA and made a nice profit. I feel no point waiting for 1p more. If there are any problems with the take over this could drop to low 20s where i will buy back. good luck all.
Anyone else holding on to their lot?
that would be a lush scenario mate
Good luck with whatever you decide.
I’m fortunate in that I only bought in to AA post Covid in March as a recovery play, did a couple of profitable T20 trades and had an average of 26.
I’ve sold now rather than wait a couple of months for a penny more. I don’t see an increased offer - remember a couple of PE suitors dropped out early on. There’s a risk that it could be voted down, in which case most see the SP tanking before any potential refinancing. If that were to happen then I may consider coming back in at the right time.
I sympathise with those now facing a loss, especially those who’ve bought them through their AA share save scheme. It’s all too common that staff are actively encouraged to invest in the company they work for and then lose out due to mismanagement, sadly.