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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
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
but i havent sold !!!!
wheres my crystal ball?
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.
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.
Why can't the AA re finance?
They can, don't listen to anybody who says otherwise.
That's what I thought! They should be in a good position to do so as it's two years away yet.
They easily can. There are plenty of lenders out there and the AA is making increasing profits (what was it - 100% increase on profits last report?)
- People will say they can't refinance. No...they can.
- People will say this bid process has somehow meant they have no time to refinance because they were too focused on the bid. Rubbish. CFO's and he finance team do this, or, employ professional financiers to do this for them for money at this scale.