RE: Takeover or Activist Vendor opportunity here15 Feb 2025 19:50
@hellodave you started this thread and added your observation as 'I see this as a takeover opportunity and replace the BoD'
Agreed.
I first invested in Wood Group in November 2024 and then sold out less than a month later in December 2024, and banked a nice profit. I sold due to the fact that it was obvious to me that the CEO of Wood Group was completely out of his depth...and the fact the share price had a nice rise. My opinion on the CEO has never changed. I expressed my opinion at the time and was shot down on this discussion board for it...I was even 'filtered' by Laura! Lol. My point was that the CEO was incompetent and should be sacked...and this has been well and truely proven since then, and especially in the RNS on 14 February. It seems the shareholders who sold out on Friday 14 February (and in the process drove the share price well and truely into the dirt and stamped all over it with to a lowly...29p!) as well as most Wood Group investors on this discussion board have finally arrived at the same conclusion.
Over the last 12 months, Wood Group's share price has been a high of £2.13 and a low of 29p as of COB 14 February. Any decent CEO would admit defeat and resign on Monday, and if not, then be fired by the BOD with immediate effect, and a temporary CEO appointed. If the CEO resigns or is fired on Monday, the Wood Group share price would rise by circa 10% to 20% in quick time...that alone would cheer any shareholder.
I think the best outcome for Wood Group now is a hostile takeover. As of COB, 14 February, Wood Group has a market capitalisation of a mere £199 million! The reasons for a hostile takeover are many and I won't go deeper on this subject for now, other than to mention the obvious:
Wood Group's CEO and BOD will not agree to an 'offer to buy' the company - no matter how decent that offer was. I think the CEO and BOD are entrenched in their positions and view themselves as 'immovable' (which should be of serious concern to Wood Group shareholders).
Given the above, a hostile takeover (notwithstanding the potential 'pitfalls' associated with hostile takeovers) would be in the best interests of Wood Group: the CEO and BOD would be replaced; Wood Group as a company - which has been under-performing - would be held accountable; current contracts and sales in the pipeline would be preserved; being part of another company provides stability and security for employees and all other stakeholders, as well as a fast track to growth and opportunities; and the shareholders would benefit from an immediate boost to the share price i.e. if a hostile takeover was in play.
The above is pure speculation of course.
In the meantime, I am happy to be invested in Wood Group as of late Friday afternoon for a number of reasons, not least of which is the fact that the share price is very cheap! Let's see if Monday and next week offers an even cheaper share price...or whether a partial recovery is in play. It could go either w
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