The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
LG just posted pretty annual good results with the added benefit of a one billion Euro payment from Vod for a new Dutch joint venture. Hopefully this will see LG's share price rise later today and with the current pound dollar exchange rate we should see CWC rise too. Of course what really matters for anyone holding for the LG paper is the LG price and exchange rate when the TO closes.
Kenny, don't get too panicky yet. There are months to go before the deal completes so the LG share price to which CWC is now tied (as Grayling correctly states) could well rise again. Additionally, if you intend to receive LG shares when you do dispose of the CWC share, they will eventually be sold in dollars which will the be converted into pounds. In my last post I put a link explains that the pound is expected to drop sharply later this year which could mean a much higher return.
Hi Grayling. Have decided to receive the LG paper and special divi. I appreciate that LG division are small but believe there is mediu term growth in the stock and can't think of anything better at the moment. Don't be too phased by these weekly fluctuations.
There are predictions that suggest the dollar will rise significantly next year which could have a large affect on the value of the Liberty Global paper for those intending to go through with the offer. If as this article suggests one pound will only be worth $1.25 next year then I calculated the value of a single CWC share as being 96 pence. What to do??? http://www.nytimes.com/2015/11/21/business/dealbook/cable-wireless-looks-past-john-malones-complex-deal.html?_r=0
Grayling, I'm going to sit tight for a while. I have only 'enjoyed' one previous TO and that was when VOD bought out CWW for a really meagre amount. However, I do remember the SP gradually rising to within a single percent of the offer price up until the deal closed. Now I appreciate the paper element of any Liberty bid will complicate things for the average investor like us and I totally agree with your income sentiment etc, but that said I do think there will be professional investors who are set up to handle US paper and will be interested in making a few percent in a relatively short period. I therefore think the SP will move toward a couple of pence of the 85/86p that is being suggested and that's probably when I will sell. GL
Hi Grayling, seems you are spot on with your estimate, traders are saying 85p although I read some reports of a cash and shares deal. (I have been waiting patiently for more than four years for this TO) GLA http://www.lse.co.uk/ShareNews.asp?shareprice=CWC&code=28m42wm7&headline=BUZZCable__Wireless_continues_rally_after_confirming_Liberty_Global_approach
http://www.wsj.com/articles/malones-liberty-global-in-talks-to-buy-cable-wireless-communications-1445528255 In addition to this article there have been two price monitoring extensions on the stock today, although I must admit I do not know what the implications of these are. GLA
What IPO? :)
http://www.thedeal.com/content/tmt/cable-one-and-liberty-globals-lilac-join-frenzied-pay-tv-market.php Just need a little patience here.
Barlew, think you are spot on with the Libert comments. Last month John Malone announced that Liberty Global was to be 'split' into two operations by introducing a 'tracking stock' specifically for its Caribbean and Latin America operations. He also put one of his best lieutenants in charge of this new entitiy (LiLac) with a brief to grow the operations. So far LiLac (Liberty Latin America and Caribbean) only has operations in two countries (Puerto Rico and Chile) and we all know how John Malone grows his comapnies, by aquisitions! GL
Hello Grayling, no it was not a UT, that took place about twenty minutes previous. It was an O, ordinary trade. Of course, for someone to buy 15 million shares someone else had to sell them so it's hard to say when you see a big purchase if it's a good or bad reflection on the company.
Not quite +2.5% by the close yesterday but nevertheless a welcome rise Grayling. (There seemed to be an after hours trade of fifteen million shares, wonder what that was about.)