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In view of the expected publication of the Scheme Document, the Company also announces that on 10 August 2021 it received a preliminary, non-binding proposal from TransDigm Group Incorporated ("TransDigm") with respect to a possible cash offer of 900p per share of Meggitt for the entire issued and to be issued share capital of Meggitt (the "Proposal").
no certainty of an offer and while the price is still less than 20 times pre covid earnings and cheap on US valuations, its very rich for uk valuations. i have taken more off here. there is a chance they dont bid in which case the shares move back to 700-750 and the upside is only another 50-60p or so.
Taking a profit is no bad thing but the other scenario is that there is a bidding war that pushes the price higher. I will hold it is worth the risk.
its a v high price. i know the parker bid was baulked at in some quarters in the states. this transdigm bid is even higher at about 18 times pre covid which is v high for uk historic standards. i run a conservative portfolio but even so i think its prudent to take off the majority up here esp since you are getting well over what parker will give next year, today.
The board recommends accepting the lower offer. Why would they do this ? I assume it's self interest rather than the interests of the shareholders.
well for a start there is no other offer to accept. transdigm is yet to make an offer and it has not long ago underlined that no offer may be forthcoming and in the case that it is, it may be a mix of cash and alternatives. the parker offer has government consent which is an important consideration given the defence element as well as the issue of jobs. so its very early days and until transdigm make a concrete offer, there is no point in meggit board changing their view.
If the transdigm offer has serious intent could Parker be prompted to raise their bid?
Agree...same as we have seen with Morrisons . Transdigm are serious players here fore sure.
cant rule it out but already in some quarters the original 800p offer was baulked at. in any case, any transdigm bid if it comes, reading between the lines, will not be 100% cash.
Bit clueless here - but in the case that Parkers take over at £8 with no offer of shares etc. this would be a forced disposal for cash. Is there any scope for relaxation of the (UK) Capital Gains Tax in these circumstances? Normally disposals could be made over a number of years to lessen the tax burden.
The board will not recommend the higher Transdigm bid unless they offer terms that are parity with Parker's that will satisfy UK Gov on jobs and national security, irrespective of the better price. It's too risky when UK Gov have demonstrated with nVidia/ARM that they have the will to intervene in deals that cause them concern.
I have taken my profit now as I suspect there will be some volatility to be had here as this situation develops.
me too. i sold at 820p. I made a good profit. just wish id bought more. I bought under 300p Such a sound company. Any upside will be negligible to the downside risk. imo
On the front page of the FT tomorrow morning
Transdigm has given strongest indication yet of an incoming bid. Unfortunately I do not have a subscription to access the rest of the article.
Still holding!
The UK Takeover Panel on Monday set a deadline of September 14 for TransDigm to make a formal bid or walk away.
https://www.ft.com/content/c7c81016-61c4-4f65-b33b-e16d3b427297
Ticking back up nicely here. Continuing to hold.
I have also sold today, again a good profit I also think there is no real guarantee that either of these bids will succeed so the down side is a major risk.
Good luck to all the holders.