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In very simplistic jargon - if you have £1000 in Dixon's shares you will end up with £1000 of shares in the enlarged company. If the enlarged company is big enough to enter the footsie all the tracker funds will, by law, have to buy a certain number of those shares - thereby forcing the sp higher - even if it is only temporary.
Guys, some keep saying +60p, at some point both shares will be suspended, so how do we expect the SP to jump to +60p when it is agreed ? Thanks
Depends on the mechanism for them leaving.
The company values are likely to be about the same but Dixons has roughly 6 times more shares in issue. No idea how many shares the new company will have but whatever amount it is your share value will stay the same – ratio wise. If the new company has 1.14 billion shares ( double the CPW current number ) for every 6 you have now you should get 1 in the new company. Each worth about £3 – extrapolate that to any number of shares that the new company has. Sure somebody on here knows the legalities of shares in mergers as far as numbers go but I have no idea what they are. If you meant will the new company shares go up due to the merger then there is a good chance they may ,but then again no guarantee. I think medium to long term these are worth having.
"disposing of a number of people last week means the profit number is a given)" - what a load of twaddle. Makes no difference as the people will still be working for the company for weeks/months to come
It means the shares will be merged with CPW to form one company. A company that will be big enough to enter the FTSE 100.We do not know the details yet but we will know them soon.
As a shareholder in Dixons, could somebody give me the low down on what the merger could mean for my shares please?
Now the market caps of both DXNS and CPW are equal, hence merger of equals is realised by the current market. Where will it go from here..
FTSE 100 plus Divi should take us in £1 land by Xmas in all reality. Think of shorts closing alone. I am not sure if that divi will come in October though.
Also FTSE 100 listing will come with the merger so good times ahead for all of us all. Divi would be the icing on the cake and its fair to say that should move us up to 60p+ land for sure. ATB Bob
Agreed CPW had benefitted more recently hence correction, and results are soon for DXNS (they will be good - disposing of a number of people last week means the profit number is a given). However, Phones 4 U owner (BG Capital?) have a lot to lose here. Without action, their main competitor gets stronger with this merger, and they will be forced to rip - literally - fixtures, people, stock etc etc out of C. 100 shops round the country. Is it too late for a DXNS bid of say >£2bn - we shall see. The alternative for them looks pretty dire IMO. Is it too late for a bid - probably, and I expect the merger to be confirmed, which will make a divi paying group ( I would assume), which should go down well.
Lets remember that CPW has had better increases in SP than Dixons of late so its prob a bit of a correction going on before the apparent merger takes place. Also Dixons will be reporting results soon. ATB Bob
I would call DXNS flat more or less today so far, and you must remember that the going ons at Media Saturn (European competition) regarding the CEO and leadership infighting may be helping DXNS too. I think a counter bid rumour would push DXNS well above 50p.. IMHO
The 50p seems a bit of a tough line to get/keep over at the moment, interesting more sellers than buyer as well! looking forward to 60p (he says hopefully) and yes we are up & CPW down? someone knows something I think.
DXNS blue now CPW red Two to watch
No. if it was a spike down for CPW and a spike up for DXNS then your theory may have some truth in it.
An interesting spike down on CPW, currently -3.8%. A counter bid for DXNS maybe?
http://news.sky.com/story/1256274/carphone-and-dixons-set-to-unveil-4bn-merger
Sky news just announced details of merger to be announced in the next couple of days 15.59pm now 50p
My mate works for Dixons and he has told me that the word on the shop floor is that they have hit the target for this financial year. Results to be released in mid May. Could this rumour be why the SP has rallied?
As the for mentioned band song go's ..... Have a little Patients ..!!! Onwards and upwards...
This is a technical bounce more than anything.
All signs pointing to go re merger regarding the SPs of DXNS and CPW, and the FT article. Let hope this means a decent rise.
Ft had an article 2 days ago saying the merger is on and an announcement might be sooner rather than later. Don't know how good their info is but the general feeling seems to be be it is going ahead. But -- do your own research!
Seb is upbeat regarding the end of year figures