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The market looks like there won't be a deal. I'd like to think the board will look after the interests of shareholders rather than their own but I won't hold my breath.
Taking a bit of a dive in the morning...
Would the RNS be issued today later in the day then?
Yes, it is up to MNDI to either come up with an offer, or walk away, by 5pm. Until then SMDS continuesin the state of being in a bid situation which would presumably be concluded by an RNS saying either we have accepted, or there's no deal to be had. Then we would know and then the share price would react.
My interpretation of the rule is that they had to notify Smith's of their intention by today rather than issue an RNS.
Their original RNS was issued in relation to that from us rather than a market notofication of their intention.
Looks as though it was a bit of a scramble to buy in the last couple of minutes of trading. Hope or optimism?
Either way it would warrant an RNS which could be from 7am before trading opens or after close of trading before 5pm. I suppose it could happen intra-day but there would be a big shift in SP if it did! Or there could be an extension, as your extract says. It's wait and see time.
Ah found the answer per original message....although not hopeful that any bid will be forthcoming (or accepted)
In accordance with Rule 2.6(a) of the Code, Mondi is required, by not later than 5.00 p.m. on 7 March 2024, either to announce a firm intention to make an offer for DS Smith in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
Can anyone confirm - is the last day for Mondi making a bid today or can Mondi still submit an offer tomorrow? Looks like its not happening either way
Sasa I don't think you can predict the outcome of an offering in terms of price per share to be paid by the offeror, since for Mondi-SMDS it will be an all share combination, therefore you will get X number of shares of the merged company (which will probably still be called Mondi)
Hi Oldfortyniner - it does seem the mkt doesn't think anything much will come from Mondi's approach, judging by the rather listless sp ahead of tomorrow's deadline, I have to concede but you never know - sasa.
Well, Sasa, it does look as though we are going to the wire with this. Your positive guess would be very nice, thank you, but your downside prediction is a bit near the mark for me as the SP isn't a long way above where I bought. No deal would no doubt generate a fall back, so I've put a stop loss in place to hopefully catch the fall if it happens that way. If it fell further I might have a good opportunity to come back in at a lower price, but one step at a time!
None of this seems to be generating any interest on the MNDI board last time I looked.
Thanks Trouts, that would have taken a lot of trawling through all the RNS's!
To be fair, I just looked back at the Q3 Trading Update from last year (9th March 2023) and it reads in a similar vein with no hard numbers given.
Is this a joke or something to hide? No numbers in this Trading Update doesn’t fill one with confidence at all. If numbers were good they’d be shouting them from the rooftops one day prior to Mondi’s deadline for naming their official offer. Not good enough.
They are in the process of sealing offer deal here anyway. Mondi got all the numbers they need. Gla
In case you don't look at the RNS's these days, DSS have published a statement, without any numbers. There is a call at 08.00 today using UK Toll Free 0808 109 0700 and Password DS Smith.
https://www.lse.co.uk/rns/SMDS/ds-smith-plc-22683648220-q3-trading-statement-yyc0x04nrn2nzzv.html
Well, we'll know on Thursday where we stand with this 'old T/O chestnut'.
On the positive side, my guess would be an offer of 400p + to be put to shareholders, almost certainly more if it is to gain the Board's recommendation - if there's 'no deal' in the event, the sp's likely to fall back by only 10% or so, given the current price is barely above where it was pre the bid talks.
Ergo, limited downside from here v 30% upside seems a good risk / reward ratio to me...
Meanwhile, management seems to be on the 'front foot' in today's conditions, which is encouraging, anyway - just my take on things, pending, fwiw - sasa.
Thanks for the detail Liam. Good to hear SMDS are not just rolling over.
Or maybe market is forcing you to believe it? Having said that an update soon here too, so sp might have some movement.
Market has a low expectation this will go through.
Mondi Plc has increased its preliminary takeover offer for rival DS Smith Plc as it seeks to create one of the world’s largest packaging companies, people with knowledge of the matter said.
Mondi improved its indicative all-stock proposal several days ago, the people said, asking not to be identified because the information is private. DS Smith still sees that bid as inadequate, the people said.
London-listed DS Smith, which has a market value of about £4.5 billion ($5.7 billion), announced last month it had received an expression of interest from Mondi. Under UK takeover rules, Mondi has until March 7 to announce a firm bid or decide it’s walking away.
Deliberations are ongoing, and there’s no certainty they will result in a transaction. Representatives for Mondi and DS Smith declined to comment.
Packaging companies have been pursuing consolidation as they grapple with the slowdown in demand from online shoppers. A deal would create a leading European containerboard and box producer, worth more than £10 billion based on current market values.
I cant see any further either :)) though guess where wasnt much info regarding price levels. Having said that, I personaly believe 400-450p range will be on the table. Gla
Ed1, can you add any detail to that, please? I'm guessing there's no substance as there hasn't been any RNS but can't see because the report is hidden behind their paywall.