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Really interesting move, like watching a game of chess. Though as a share holder, it makes it more of a guessing game.
Scheme of arrangement is off. Switch to a take over offer. I suspect they are trying to buy our shares at 165p. If i read well if more than 75 percent holders sign up, it will go ahead.
Not sure if this means the are our of the auction completely or its just a change if Carlyle does not come up with a higher offer. My guess is the later.
Too many Boards have been willing to accept the first bid - often made by Private Equity sharks. That is why an alarming number of British cos. have been acquired by US companies at bargain prices.
It makes one wonder why Directors rarely hold out for more. As someone who was extensively involved in negotiating during my working life, I wouldn't accept the first offer made!
In my case as a small shareholder one or two of these bids have been below the price I paid for the shares as the low share price laid them open to opportunistic bids.
I think Carlyle will have one more go. I doubt they would want to go into auction.
I wonder if there might be a chance that Carlyle will decide not to proceed, presuming PMI will just keep topping whatever they put up?
Taverham. Vectura is a perfect fit for PM and Mitsubishi, existing company , PM as been in this area of the market for 10 years- I would say Carlyle is just a Government pushed company - due to its all political ties down the decades to the GB government. PM is a much better fit and I am sure they will push the price up again if needs to, forcing Carlyle to pay more .
Next 24 hours will be quite interesting. Carlyle has to do something, at least match PMI's bid or they could be deemed out. PMI however could increase their bid in last minute of the day and Carlyle could be out. In a tie, auction would be in the best interest of shareholders as it would give others to take a serious look, just in case, and both PMI and Carlyle have to bid their maximum they would be willing to pay. What do you think?
Brilliant news!
Aug 9 (Reuters) – Britain's takeover regulator said on Monday it would launch an auction process for Vectura if its suitors Carlyle Group and Philip Morris don't make final bids for the London-listed drugmaker by Tuesday.
Vectura separately said it was withdrawing its intention to recommend Carlyle's increased offer of 155 pence per share and that it had no intention at this stage to recommend Philip Morris' 165 pence proposal from Sunday.
Up for auction. Hopefully it will end up as a bit of excitement and not a damp squib. Initial reaction to SP is positive.
Quite possible. Carlyle's strategy is to get enough institutions on their side to fight PMI. They need a third to be able to stop a deal going through. They wont give up now. I am sure they are talking to others. Thinking more and more this is not over yet.
Debate on bloomberg just now concludes with 'we will see' [ as to who will win ultimately]. i am now thinking we will get around 175p ultimately.
Carlyle managed to lock in three institutions into their deal (Axa; TIG Advisors; Berry Street) They only have total of just under 12% of votes (not enough to get the deal approved by shareholders). They are in bed with Carlyle unless a counter bid comes in higher than 10% on top of 155p (170.5p). PMI only offered 165 at this time! If I read this the doc correctly, unless Carlyle bids higher than 165p or unless they withdraw their offer of 155p, these guys will not vote for PMI's deal. PMI clearly thinks they can get enough votes in to get it done if nothing else changes and if Carlyle does not increase their bid (I think that is fair assumption). If PMI's bid gets approved, the three institutional clients, would still get the 165p anyway, as they would be forced, by the majority shareholder vote, into the deal even if they voted against.
I think PMI has thought about all this in advance and knew if they would get outbid how to deal with it. Overpaying is never good, and PMI's shareholders would probably agree with this approach.
In view of PMI’s financial strength and their wish to pursue new sources of revenue, I’m surprised today’s counter off isn’t higher than 165p to shut out Carlyle permanently.
Bad play from Carlyle by trying to be stingy. I think they could come back but hey need to bid much higher if they are serious.
If this article is true - we have a counter bid from PMI first thing in the morning. Fantastic response!
https://uk.finance.yahoo.com/news/marlboro-maker-goes-hostile-battle-103100855.html
PMI have just upped their bid to 165p: https://www.msn.com/en-us/money/companies/philip-morris-heats-up-race-for-vectura-with-14-billion-bid/ar-AAN4qZl
Will Carlyle come back in?
If PMI came in with another counter bid on Monday it would clearly shows its firm commitment that they should not be messed about with. Swift action would make a very strong impact.
This is a standard language you will find in many types of offers. Somehow i doubt a third bidder emerges here but counter bid by Philip Morris is certainly on the way. If PM wanted to get this done and dusted they would come up with a strong increased offer. Carlyle is playing a game, increasing only by the minimum, not willing to overpay a penny.
“The Vectura Directors, who have been so advised by J.P. Morgan Cazenove and Rothschild & Co as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable”
What fees are they being paid to trot out this claptrap? Didn’t they say this with the first bid? Be nice to see a third bidder come in now, with a fair and reasonable bid.
It will be interesting if another bidder emerges, as The Market currently expects.I have sold 10% of my remaining holding at just under 164p as a hedge
I would disagree. Carlyle's second offer as they were outbid on the first one. So this is a bidding situation. Philip Morris is building a long term strategy on Vectura's capabilities, they will not walk away from this without having another go. If Carlyle wanted put this to sleep they would have not just bid 5p more over Philip Morris. Whoever wants this business will have to pay 15/20p a share more.
I hold 80% of my holding and now regret that move.
The comment saying that this bid is more aligned makes it harder for Phillip Morris to suceed and therefore a bidding war may not last long - I hope it does however!
Here we go, Carlyle increases offer to 155p a share. Bidding war is on. Philip Morris's turn next. Glad I did not sell out.
It's okay, I found the answer.