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I don't understand all the doom and gloom here plus the reason for the drop its easy money. Ted have rejected a low ball offer and clarified that they see thing going well going forward.
Option 1 Ted continue and this is double in 12 months
Option 2 they sell but for a higher price more to what they believe the value is and this almost doubles within 12 months.
Im getting some money together plus waiting until April the 5th for my ISA but im happy to pay 1.30 or below.
Or perhaps how the rules can be circumvented/avoided/manipulated ......
In order to recognise the above you need to read all statements from the relevant parties very (VERY)closely . take todays as an example:
in block capitals at the top it says
"THIS IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY OFFER MIGHT BE MADE.
It also says
" it (ie the board)has received two unsolicited non-binding proposals from Sycamore Partners Management L.P. ("Sycamore") in relation to a possible cash offer for the entire issued and to be issued ordinary share capital of the Company."
Ie we've had a chat or two but neither party wanted the offer to be formal and subject to the rules 'cos that means we have to tell the punters and we really don't want them involved. It also means that the board were not obliged to tell Tosca and the other major holders who might want to take the deal.
One of the possible reasons why the board might be more reluctant than the shareholders are that (so far as I can tell) the board don't hold a lot of stock ie the CEO and other board members hold 33k each and the Chair 133k so the bids are not nearly as attractive as a continued salary of £578k pa for the CEO and no doubt commensurate sums for the other board members.
The likely next steps already being taken are, Sycamore and Tosca in conversation and if they are inclined to take the cash, Tosca having a word with the board (if you look at Tosca business model there is a vanishingly small possibility of them buying TED themselves- they are a speculative multi channel hedgie not buyout specialistsand of course they could have gone over 30% by buying stock at sub £1 for many weeks.
As most of you know Sycamore have , by the rules,28 days to "put up or shut up " although as it was TED who went public see
"This announcement has been made without the consent of Sycamore."
The board are probably hoping that Sycamore have been caught on the hop and won't come back with a higher bid , and judging from mrket reaction that looks quite likely.
Easy pick up circa 116p knowing that they have already proposed tow figures higher than that.
Lets see what progresses.
I don't know a great deal about takeovers 32, but i feel the board should have had at least told the shareholders that they had a bid of 130 then another bid of 137 without having to here from it on sky news, shareholders on this board new nothing about even the first bid, we on here were all waiting to see what the bid was.
At what price will the board let the small shareholders know about a bid, their could be a bid come in at say 150-160 and the board could just dismiss this without even giving out an RNS, not right imo.
They could at least give out an rns stating in our opinion this is not enough.
Would love input on this board from anyone with experience of takeover deals (but perhaps nobody has, myself included). My narrative is the following: This is standard negotiations shenanigans, first bid comes in low (although still >50% premium to the 87p ish price seen earlier in March) to test the waters. Presumably as "unsolicited non-binding proposals", there's no legal requirement to disclose the information. Putting a positive spin on it, Ted saw 137.5p as laughably low and saw no reason to trouble the public with this information when a higher, potentially attractive bid will be forthcoming.
A quote from the 'Armchair Trader' today: "[Ted Baker] has now received two unsolicited offers from a private equity buyer. Both have been rejected on the basis the board believes that the approaches undervalue the business, but clearly this paves the way for renewed bids to emerge."
I hold with an average around 150p so clearly I'm inclined to hope for a positive outcome. But at this stage I don't feel the need to run for the hills.. holding strong with my dear Teddy.
Yes I agree. I believe that in the mid term the bod should get this over 200 quite easily so why would they want to sell out for a miserly 137 now. I still think Tosca could bid.
I reiterate that they do not have to sell in anyway shape or form.
The sp should be at 1.50 even without an approach.
Sycamore are chancers.
Very poor from the board not to rns or included shareholders in the decisions!
Just topped up with a load at 1.18, sycamore are having a laugh.
£2.50 or we are not even speaking, Tosca and next we look forward to hearing from
you.
If Sycamore withdraws now ( which i think they will ) and no one else seems interested, if the share price does not get up to around the 130 mark in the next 3 months then the board should have to answer to the shareholders why it is not.
I should have added I think that the share price will perk up this afternoon as I am sure that due to the board actions over the last week someone out there will see what a bargain this share is and snap it up at a price which would have been muchigher if not for the BOd
There should be an investigation and in the mentime the board due their incompetance shoud state that they are willing to sell to the highest bidder and then resign once the businss is sold hopefully to people who will take it forward than this motley crew who seems to only want to save their jobs
We all should have known really, it's like Peteret has just said it stinks, i said when all this started if no decent offer comes it will drop back, but it is greed really we all want that bit more including myself, but the board should have told us when the first offer came in and then you could have judged yourself whether to sell around the 130 mark, instead we have watched it sink below the 120 mark, and i can see it drifting down even more.
Maryb ..yeah I may well return to hold here 'cos I do think there is a profitable business to recover slowly as there is with a number of retail names severely oversold.As you say anything in the vicinity of 100p is a good entry point, the business is near enough debt free, well-established name and despite today's flak ,a reasonably competent management and someday ( hope ) the world will return to normal!!!
we have all been turned over. the offers were made but only the big boys were told so they could offload .
this whole thing stinks and should be investigated.
my earlier posts from Thursday are coming true.
It's getting tempting
casapinos
BUY LOW SELL HIGHER - well done.
Trimmed at the open but still holding with a criminally low average cost to await developments and but will buy back any sub £1 dips.
swingman that might be Sycamores strategy, in that they indicate prices to see where the share price rises to and settles and that then makes them more able to table a bid which will appeal to many shareholders.
ELM did the same last year and no one came back .Now the sp is lot lower than before the first bid.
They were just testing the water. I think the offer was delusional and opportunistic at best. Ted is a good brand and the offer doesn't reflect any premium for that. I would have thought a sensible price would be at least 175.
was a very cheeky low ball offer - but they seem to have come back quite quickly with a 2nd offer , im expecting another this week , they have left themselves plenty of time to come back , maybe just testing the waters but if their serious got to be £2 min surly.
This could stick around the 115 -120 mark even if sycamore pull out with the board stating they have turned the corner now, imo i don't think sycamore was really serious about taking over, if they were i would have thought the offer would have been at least 150.
It will be interesting to see what Tosca do next now Sycamore have shown their hand. Do they decide to go to 30% or put in a counter bid? One thing for sure though is the city had an inclination of the offer price. It does stink...
See my post of 7.35 - it looks like the market agrees with me, a bid if forthcoming, is going to be, at best, 20% above the current SP, the risk/reward is now to the downside. I have cashed out.
Had to be worth a punt at anything under 120p given the levels of sounding out in the RNS.
I think they have until the 15th April to make an offer or not.
If other bidders looking this should deffo flush them out...