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I don't think the results were that bad considering. This should be back in profit when the next set of results come in.
I loved that RNS .
As a direct line share holder I loved it .
Because I love Mediocre, lacklustre , shambolic , dismal things.
I really do.
Now it truly is a binary outcome. Ageas' hand is much strengthened, as the synergies / cost cutting are better addressed in a larger group and DLG have made it clear they will be reducing staff in any case. The second bid now also makes some sense.....any further sweetening of the deal will look more digestible to shareholders in comparison , and as such I expect we will hear of a slightly better offer being made this coming Saturday. So no bid or final offer, 1.50 or 2.50.
Would prefer no bid unless £3 north - would rather take chance witht e company from 150p level growing - however management needs to change. The dividend reset is not great 4p final maybe 8p next year - seems to erode the reason many held this for so long.
The rns is positioned in a calamity favourable to a further final bid.
250p is the order of the day, and on that basis, shareholders should be glad to wash their hands, but not ecstatic or with glee
I'm not a DLG holder, but do check in on this board from time to time.
With regards Ageas coming back - you have to think that posting nearly £200 million 'loss' is pretty dire and as such, why on earth would or should Ageas come back with or raise their offer. If indeed, they do, it will be paltry and as such will undoubtedly be rejected by the BOD yet again - THINK HARD, as if they pull out or offer a paltry one that's rejected again, as some have said, the SP will indeed plummet!! I'm ALL for greed and making money where and how you can, but based on today's results, you have to think that the screen will be red again for many days coming.
Clearly just my thinking
There are significant risks for a CEO attempting M&A because of the costs involved and the personal reputational damage associated with failure (Mike Coupe at Sainsbury's comes to mind when the Asda deal was blocked, he lost his job). I don't believe that Ageas will walk away, as the actual results are just short of analyst consensus, so no big surprise to Ageas. The miss might well tempt them to make a third offer. I don't think this saga is over yet, but there will be a limit placed on what Ageas can bid. It is also possible that another player will enter the field.
I sold out ages ago had not intention of buying back but had a punt on a takeover chance after pull back around £2.08 but results today sold out today.Would not like think where we would be if the bidder ends up walking .Already missed out 2 offers curry’s and RWI useless management there.
"I don't believe that Ageas will walk away, as the actual results are just short of analyst consensus, so no big surprise to Ageas. The miss might well tempt them to make a third offer."
I think it is quite likely that Ageas had a good idea as to the sort of results DLG would be releasing today and why they went with the bid the way they did probably hoping that the board would open negotiations or commit to a price they would accept. I don't see DLG being anymore eager to agree to a takeover now than they would have 2 months ago, particularly with a new man in charge who probably feels the company has now turned the corner.
"however management needs to change. The dividend reset is not great 4p final maybe 8p next year - seems to erode the reason many held this for so long."
Management has changed. More will no doubt follow as part of the cost cutting.
Insurance should be conservative and boring. PJs failure was in not keeping to this and we are only now seeing the full impact this has wrought.
I consider the dividend messaging to be part kitchen sinking and part a signal that management are returning to more conservative values. Expecting the dividend to return to similar rates so quickly probably a bit too hopeful.
Wouldn't surprise me if we start seeing more positivity from July onwards and more clarity around medium to long term plans for dividend, special dividends and share buybacks at the capital markets event planned for then.
Not bad to get all the dirty laundry out in the open, now he’s able to make his stamp and look to recovery.
As much as we all want fat dividends I’m happy to wait a couple of years to see him turn this puppy around
Ageas have to table a bid by 27th next Wed iirc.
An extension seems a waste of time unless a higher bid is tabled.
Guess we have only 3 trading days left as after close on Tues will be too late to change mind.
Mary sweetie the deadline is 5.00pm on Wednesday 27th so it won't be too late :-)
Word of warning to everyone, which has come true again with this thing called DLG.
Divivdend policy was so wrong. Should have been cut in half a long time ago. Any SP thst has a divi above 6% usually ends in disaster, be it gets a nasty haircut, or the SP drops like a plane coming into land. Truth hurts, but it’s a fact.
We brits are looking for juicy stocks with dividends to beef up your pensions and sit back and watch the SP rise back to their former glories.
It’s one talk my broker gave me when I was one client with Rathbones ..
It’s time to put some of that pension to use and top up in that big dip come next week! Can’t wait !!!!!
"Word of warning to everyone, which has come true again with this thing called DLG.
Divivdend policy was so wrong. Should have been cut in half a long time ago. Any SP thst has a divi above 6% usually ends in disaster, be it gets a nasty haircut, or the SP drops like a plane coming into land. Truth hurts, but it’s a fact."
While investors should always be careful reaching for yield, I don't think that is the issue here - much of the insurance industry are paying higher dividend yields and not having difficulties in doing so - and until last year DlG's dividend was sufficiently covered with the company having enough resources left over to cover improvements to the business.
The problem here was more to do with a series of other misjudgements of varying seriousness (2 £100m share buybacks, repaying a £250m loan both reducing the capital buffer) and a failure to price policies correctly which then left it exposed to the impact from higher inflation, asset write downs and much higher claims than usual it has endured the last couple of years.