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Oh well that is it. Good luck to all who held on through the takeover and I guess this board will be no more very soon. Whither Comsman!
Thanks DMD. Well that explains why the updates have ceased. I am glad I got out at just over 77p last week. I already parked the cash elsewhere and will receive a dividend on those new shares mid-June, so happy. I did mull over keeping my stake and taking the liberty shares (I still hold US paper from verizon via vodafone). However, having just endured the second price rise in a year from Virgin TV and also realising that with a bit of internet jiggerypokery I can get most of the content for free, I binned them (and I suspect many more will follow) and who owns Virgin......Liberty Global!
Yes they did, but from market close weds pm to the time that the LSE closed on Friday evening Liberty global had fallen from a whisker off $40 a share to $37 (over 7.5%). CWC simply tracked that fall. By the way, you said the 13th, did you mean May or June and where did the date of the 13th come from?
I agree with your opinion of John Malone. However in this instance he is not guilty mlud as JM has absolutely no control or say in the content of these RNS offer update statements put out by CWC. They simply state the facts based on the offer ratio of LGY to CWC shares on offer and based on the current (or average) price of the former. Are you still in CWC? I got the impression (based on how quiet this board had been lately) that most UK holders had jumped ship. I did so last week having spotted an opportunity elsewhere to park the cash and earn more income. How about you?
No you have completely misunderstood the nature of the offer. It is not cash that CWC shareholders are being given, so numbers such as £3.5M or £3.6M are totally meaningless. You are getting paper in the form of US listed shares in Liberty Global and as the ratio of LGY:CWC paper you are getting has already been decided, the true value of the deal to an individual CWC shareholder is thus totally dependent of the SP of Liberty at the cut off date. The cash component is tiny (the special dividend). My question was why have they stopped issuing offer updates? As for propaganda I do not know what you are referring to at all? Who's propaganda? Do not forget that the RNS posts are a legal requirement on the company as it goes through the takeover process, so I do not see how they can be construed as propaganda?
No that cannot be the case. If they set the price at 86p last November why then issue weekly RNS updates telling CWC shareholders how much they would get based on the closing price of Liberty Global the previous day. Here is the text from the (apparently last) April 22nd update: The consideration under the Recommended Offer represents an indicative value of 77.23 pence per CWC Share (including the Special Dividend and using the Closing Price of Liberty Global Shares on 21 April 2016); based on the following: the Closing Price of $37.74 per Liberty Global Class A Ordinary Share on 21 April 2016 and a volume weighted average price of $38.82 per Liberty Global Class A Ordinary Share over the 10-day period ending on and including 21 April 2016
Any idea why these have now dried up? The last one was issued back on Apr 22nd. Is the price now set in stone as an average SP over the period they were giving these out? Is there anybody out there?
Sold today for a respectable 17.9% profit having held for 12 months. Decided that the cash/US paper mix did not suit me and that I was better off reinvesting the CWC cash in something with a steady dividend yield. CWC has been good to me as I initially held for 12 months 2013-2014 and got out with a 39% yield before buying in again last year. Good luck to all of those who continue to hold here.
It depends entirely on sentiment towards Liberty Global as we move forward. The CWC price now just tracks that of Liberty. If the CWC deal is seen as a good one for LBYT then the SP should rise. If not it will stick/fall. LBTY is trading off a 52 week high of $55 and currently sits at $39, so scope for recovery there if the market moves up.
The RNS's are issued daily as a minimum wth an update on the offer value at yesterdays closing prices.
There will be a special dividend included in the final strike price when takeover by Liberty Global goes through. You can find out how the numbers break down by looking at the RNS announcements periodically issued as "offer update". Basically, at the moment keep an eye on the LG SP on NASDAQ as the more this goes up the more the offer for CWC is worth. A lot of UK shareholders bailed out in the low 60s as the CWC price slid recently, but LG has now recovered and thus CWC has risen with it. Its a balancing act with your decision to hold/get out based on your willingness to hold US paper in LG post TO (plus some cash) or sell before then, take the money and run.
Maybe something to do with the imminent takeover?
What has happened to the dividend from cwc? usually in Jan
Glad I held on for the LG SP recovery. Now getting into interesting territory!
LGs spurt up has certainly resulted in todays shift for CWC. Let us hope the rally in LG continues! The tie up between LG/VOD in Holland does not seem to have had the same effect on the VOD SP, which I also hold but may be the continuing saga of the Indian tax issue is holding their price back.
LG just posted pretty annual good results with the added benefit of a one billion Euro payment from Vod for a new Dutch joint venture. Hopefully this will see LG's share price rise later today and with the current pound dollar exchange rate we should see CWC rise too. Of course what really matters for anyone holding for the LG paper is the LG price and exchange rate when the TO closes.
We won't see any improvement here until LG stop getting hammered on the NASDAQ.
Recommended Offer would represent an indicative value of 69.07 pence per CWC share. Up from 67 odd pence a week ago as LG shareprice has bounced back a little.
Oh dear! bad timing mate or what. If you sold at 63 you would have been 4.4% better off if you had waited until today. Depends on your entry price, but if you did manage to get out at 63p with a significant profit then well done.
Ok I note the optimism of others but I'm out of here. FTSE250 down another 2% today and CWC 2p off. LG is now at a 52 week low and the world is either in a bear market or a state of collective panic re oil, minerals China etc. Would rather hold cash at this time. GLA.
Kenny, don't get too panicky yet. There are months to go before the deal completes so the LG share price to which CWC is now tied (as Grayling correctly states) could well rise again. Additionally, if you intend to receive LG shares when you do dispose of the CWC share, they will eventually be sold in dollars which will the be converted into pounds. In my last post I put a link explains that the pound is expected to drop sharply later this year which could mean a much higher return.
The deal can only be a rip off if the price offered was intentionally set too low, which at the time of the offer it certainly was not. All that has happened is that in the meantime the markets have tanked and the LG price (to which CWC is now tied) has dropped. If CWC were standalone who is to say it would not have dropped back to the present price or lower anyway? Similar to the Shell/BG deal, which looks less attractive now the price of oil/gas has dropped so far. Will Shell pull out of the merger...I think not. Likewise this LG/CWC deal will go though at the market determined price.
Ok panic selling is happening as people realize a takeover at these prices is a rip off for current shareholders. Anything less than 70p is nonsense. Someone needs to pull the plug now and allow cwc to continue trading through this current weakness in share prices and hold out for better value in the future IMHO
At what point should the directors withdraw their support for the offer? Being structured the way it is there seems limited downside for the buyer and its all falling on the seller.