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I put to you Paul that the synergies that would be employed by Ageas is to reduce the total number of existing employees from both companies or even just those of DLG. I doubt that any long term employee with a share holding is going to back the board in selling out. With the following benifits. It would be the same as Turkeys voting to be on a plate for christmas dinner.
DLG has 9000 employees
Benefits
9% employer contributed pension
50% off home, motor and pet insurance plus free travel insurance and Green Flag breakdown cover
Additional optional Health and Dental insurance
Generous holidays
Buy as you earn share scheme
Employee discounts and cashback
Opportunity to apply to our customer service and data apprenticeship to develop skills for the future
Ageas has 2000 employees spread over over 7 offices
Ageas is also backed by a Chinese Insurance company.How many more of our UK companies are going to be infiltrated by a possible link to their government.
I for one do not want to be forced into a loss at £3.64 for which I have no control over.
So no this LTH is not for selling out.
I don't see your logic B-K-B
The ICON is a telephone plus I still use a landline for my broadband connection even if it was changed to half copper and half glass.
By your logic Richards Virgin airline etc must be outdated as he and it must have lost their virginity a long time ago.
You don't change what is recognised brand just for the fun of it.
Denby, you're discounting that a great number of longstanding shareholders here (enough?) do not trust the co. not to make the same mistakes again. We would welcome a bid (from whoever) at 275-300 in order to receive those (currently wished for) future turnaround benefits now, without taking the risk that DLG has not resolved it's issues and will not deliver if left to their own devices.
Even at 275-300p I will only just come out ahead, particularly when factoring the period of nil dividend income. I will just be grateful to not lose as much as I could have done if I sold when the co. shafted it's shareholders by removing the dividend completely just weeks after reassuring that the dividend was safe.
Sunday Times reporting that the Ageas CEO is visiting China to shore up support for a bid that gets taken seriously. Seems this saga might not be over?
Just going through my various insurance quotes over the last years including the non DLG car quote from yesterday (up 85%) on last year) it seems indicative that ALL companies are hiking premiums significantly and that most of the hikes are going to be the new normal and nowhere to hide.
Even comparison sites are significantly higher and have a no claims history and the only thing different is an extra birthday.
DLG will be fine and the dividends return.
The globalist reset worked a treat. Pricing power paid for by the general public while the government ropes in 20% VAT or 5% VAT on many things that have doubled in price.
Anyone else here think the name 'Direct Line' with an icon of a landline is about 20 years out of date? Probably the least tinkered with brand name in this country. Things have moved on so much but Direct Line seems stuck in in its ways. Least change it to 'Insure Direct' with some app icon.
This will never be taken over . back to 160 then 2 years time it will be 280---300 per share with a good div offer has too be 290 ---320 for this to be taken over .
"Most bidders to seem to walk away once a reasonable premium is offered and not accepted. Curry, DLG, ELM all too greedy and no one want to pay stupid level for these poorly run companies. Some CEOs accepted the offers and managed attract more higher offers because knew the CEOs of those companies are serious of offers and shown respect."
I think there are reasons to think that the bid did undervalue DLG. It will take a couple of years for the unprofitable policy writing to work its way through the system. They are now writing with a much better margin, that probably wont be fully reflected in the figures for another year or so. Inflation is falling, interest rates will also start coming down soon so the value of assets they hold will likely increase again. There will be steps being taken to reduce running costs.
I understand your point about “poorly run”. The recent comments of founder Peter Wood imply that in this particular case it might well be valid. I agree it doesn’t always apply and is used a bit lazily during downturns that few management teams can do much about.
What does "poorly run" mean? As a former exec of a large engineering business, I have heard it many times but never heard it explained. I suspect that it is a catch phrase used by the ignorant to explain the occasional bad times which nearly all businesses experience.
I just came to the conclusion that that the UK market is not cheep but reflecting the true Vale but the punters and CEO's think that their company is more valuable. Most bidders to seem to walk away once a reasonable premium is offered and not accepted. Curry, DLG, ELM all too greedy and no one want to pay stupid level for these poorly run companies. Some CEOs accepted the offers and managed attract more higher offers because knew the CEOs of those companies are serious of offers and shown respect.
"Would Mr Winslow have taken the job on if he didn't think it could be sorted?"
Is there likely to be much that needs sorting? As far as I understand the issues DLG face are
long term - its higher cost base compared to peers.
Short term - failure of CEO/Board to anticipate perfect storm - Brexit, Covid, Ukr/Russia war shocks and react more conservatively sooner both in pricing and paying out to share holders after they hit.
The higher cost base was highlighted as an issue by James before stepping down, so it's likely work has already been done to begin tackling that.
As for the short-term issues - The CEO stepped down and policies have since been written to better reflect inflation. The latter takes time to feed through.
Shorters creeping in, LTH topped up and hold as no rush plus divs on the cards.
Doctor Doom and the price action predictions
"On it's way sub £2 - still the BoD say they can do better. Let's see.
Revealed: One of the largest shareholders in Ageas, the Belgian insurer, believes its pursuit of London-listed Direct Line Group is “aggressive and opportunistic” and should be abandoned, in a fresh blow to the prospects for a deal."
Would love to know what was meant by "aggressive". It certainly looked opportunistic and halfhearted. The second bid is a real headscratcher though....
Agreed. Surely the outlook statement has to be positive. Otherwise the board would look rather stupid in not entertaining the offers from Ageas. 6-12 months this is back to £3 imo
Would Mr Winslow have taken the job on if he didn't think it could be sorted?
If you are a stalker you know how I play - add trim or trim add - happy to sway in the wind rather than sit at £3 with a loss or hold at 225 for 12p when there are no certainties.
Holding forever rarely works in the UK.
The share price sways in the wind and if positions can be improved, why wouldn't you trade it and keep a core.
Anyway you are obviously not a Newbie so take off the mask.
Someone who is quick to pick up on anyone who sways in the wind :-)
RIshi so you signed up as a Newbie and found DLG to post that for your 1st post.
As they say on The Mask
Who are YOU?
So while Nero fiddles there is money to be made
Yeah cool story
Grab that falling knive at 16 :28
Looks like a WG' all over again. 2 bids reqjected withdrawn and back to 160p - hate to see the profit deteriorating but LH super divi share again.
On it's way sub £2 - still the BoD say they can do better. Let's see.
Revealed: One of the largest shareholders in Ageas, the Belgian insurer, believes its pursuit of London-listed Direct Line Group is “aggressive and opportunistic” and should be abandoned, in a fresh blow to the prospects for a deal.