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I sold the last lot on Thursday for that morale boosting 400p having let some go just before IP turned up, as I don't want to hold IP shares. I will be watching to see what MNDI's next move is and whether they trump here, as they may be worth a look if they fail here. There's been a number of bid actions recently which leads me to think that corporate buyers see the worst is over for UK equities and their lower valuations will likely rebound this year hence get in now is their call. What now for my SMDS funds - ITV, DLG and PHNX are fair candidates for a recovery this year, or something different with HTWS. Good luck here next week if you're still holding. ATB.
I wondered about Reckitt , smith snd nephew or Wpp
What are you looking at?
I also sold on Wednesday and Thursday because I didn't want IP shares, to lock in the profits, and because I don't see much more upside here.
There are plenty of other shares that look to have significant upside, so I wanted to use the funds from SMDS to move into those without delay.
My mum did the reverse! I had advised her to buy Smiths group after they sold their medical division. I only found out years later she had bought ds Smith.
You sure you didn’t just buy smiths because you like stocks with that name? 🤣
For me it was because I don’t see any more bids coming in and nearly 4 in hand is worth 415 in the bush. I don’t want IP shares. My average was 320 so it was a nice profit. I would have preferred to keep my smith shares long term but it is what it is. Funnily enough I’ve put some of the money into Smin a boring industrial conglomerate that I think will be broken up at some point
Why did everyone here sell on Thursday ?
Just goes to show how insignificant retail investors are. I too sold for 396. Did anyone buy since the IP bid?
😆 Took me a while, then the penny dropped.
Good one! 👍
Groan!!!
Well put Robbiee.
@furrycoat you won't be to do that ...........
The market is closed on mondi 😂😂😂
“… boxing clever…”
Recycling that old joke huh? Delivered, may I say, with panache. I guess I’ll wrap it up before we get carried away.
Cardboard boxes suddenly got interesting .. DS Smith boxing clever with two on the hook, think IP have got this landed as Mondi hampered by debt.
Sold at 3.97 and now watching for updates.
May buy Mondi next week.
I will be looking to sell next week, but not entirely sure about it yet
I sold at 3.98. Avg @3.00 so with the recent dividend as well too good a profit to turn down. WiIl be watching from the sides for major changes as this is a good share but too much uncertainty for me in the current bid process. GLA
Sold out at £3.99 . Have to say a very easy 50 percent plus made. Wish it was always like that.
Me too. Sold at 397, which gave a 32% return since May.
Reading the various bits in the FT, I’d prefer a Mondi merger and - if it happens - then I’ll be back in. IP looks like too thin an investment proposition to me.
GLA.
I have sold this morning at 395.5 for all the reasons below but i see sp up a penny since, wonder if it will go up more
I sold today too. If the offers full through it will head back to 300p so on a risk reward methodology, I took the money and ran!
Hi all I have sold all my DS Smith (30,000 shares) over the last two days.
I don’t believe Mondi can raise the extra funds required to beat IP, and I recon IP could walk or be rejected by DS.
Good luck to you all. Hope it goes higher for you all (probably will now I’m out).
Sold today. Reason being if SMDS accepts the International Paper offer the dividends will be subject to the 15% withholding tax, which is inconveniente for ISA investors. I banked a 30% profit however I will buy again in case of a merger with Mondi
The outgoing DS Smith CEO will simply want the highest price for the shareholders before he retires, any future integration problems won't be his concern. Money talks.
Very interesting Lex article in the FT - https://www.ft.com/content/cd354951-cb4f-43a6-9120-86dea3ba4424 (paywall).
In summary:
- Both bids are effectively defensive following Smurfit Kappa’s deal with Westrock
- Mondi almost certainly couldn’t afford to up their offer, but International Paper’s offer is effectively only 4% above Mondi’s offer at closing share prices
- The Mondi/DS synergies are obvious and worth at least
- The International Paper/DS synergies are much weaker
The nub is that shareholders should beware of International Paper paying a premium when it is likely to be value destructive to the shares you’d be getting (my words, not theirs). The Mondi offer is much more obviously value creating.
If anyone else has FT access then please feel free to correct my summary.
A previous (non-paywall) article on Mondi/DS synergies - https://www.ft.com/content/55ffcf39-c4ae-404e-84cb-b312b456e48a