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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/
Thank you. Does anyone have a subscription to The Telegraph so they can copy and paste the link please?
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 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.
I flogged nearly all my shares , read the telegraph article and am still not sure whether that was a good or bad decision. I still have scars from flybe bidders ganging up with the bod [and promises of job for ceo] against shareholder interests so I don't trust directors without huge shareholdings anymore.
Tav - you may be aware that the advisers to the AA are Evercore, who were also the advisers to Flybe responsible for the devious plan to force the sale of the company at undervalue, by first selling the business without the need for shareholder approval, having changed Flybe's listing from premium to standard. I wouldn't be surprised if Evercore have a similar dirty trick up their sleeve to force the sale of the AA for 35p, hence my wariness (plus the fact that there doesn't appear to be very much upside).
Taverham, this was always likely when the PE didn't have the backing of the largest holder. You made a decision rightly or wrongly. I wouldn't lose any sleep as you are never going to get it right all the time. This is still a very dangerous situation but I expect ABC to get more out of the PE.
I’m not as learned as many on here, but as a ‘first pass’ it would have enabled Bidco to hoover up a decent wedge at 33p to 34p which, should they need to, and want to, chip in more, then their av cost might work out where they want it to be.
At the EOTD, summit is only worth what sumbody is willing to pay. Thing is, we don’t know that, so we have to make a call along the way. Whist I took my profit, I am interested to watch it all play out. It’s a bit like buying a secondhand car, you can always try a lowball offers and work up