perhaps MOB decline offer?11 Dec 2006 21:14
As I see it,MOB share price declined after the China regulators stance.MOB have made 9m profits in H1 and were approached by interested parties on a buyout.The other parties have walked,as I assume their offer was not satisfactory.ZED are no doubt aware that they need to make an offer that satisfies the board and ultimatly the share holders.They will have made soundings and MOB management will have made them aware that their offer needs to be in the region of "X".ZED are in the market for expansion,and their own accounts show that they made a profit of 15.5m Euro in 2005.The profits from MOB would surely double their profits and more particularly when cost cutting exercises are taken into account.Likewise in the event that ZED walk away MOB is still a business that is profitable and whilst their sp will drop back with no bidders they must surely rise again given time.I still see ZED making a bid on this company,( perhaps because I hold shares and want profit),but also because it makes sense for ZED to expand and grow into the markets MOB have secured and at a price that will be palatable to ZED shareholders.What would I do if my shares were purchased at mid 30s to 40p? I think I would sell half and keep the remaining half for the possible upswing.I could cut my losses and hope ZED withdraw,but not after what I have said above