RE: What if....?25 Apr 2025 20:40
I must say I have never known a stock to have such a series of self-goals as Wood - especially over the last 2-3 weeks.
Nor have I ever seen a stcok that have so many twits and turns - it was not that long ago Wood was a credible FTSE 100 stock.
The RNS next week ought to show a clear direction forward.
At the moment, we know that Sidara is at the table and is a long way into its due diligence and has accepted the Deloitte draft review. We also know that Wood BOD is 'minded to accept' Sidarra's offer of 35p per share plus $450M cash injection into the company, and recommend such to its shareholders. Wood would have already consulted with its major shareholders who no doubt have agreed they are 'mided to accept' Sidara's offer. Therefore, it should proceed to conclusion.
That said, Sidara need Wood to comply with conditions, which include not only audited accounts for 2024 etc, but also 100% support from all members of Wood's BOD. All it takes is one vote against and the deal is off (unless Sidara waives this an a requirment).
If I were Sidara (when they are ready to provide a formal offer) I would up my formal offer to a minimum 45p per share plus 450M cash injection into the company to ensure this gets over the line and satisfies all of Wood's BOD and most of Wood's shareholders - and turns a 'minded to accept' attitue into a 'definately accept' attitude'. The key is to win Wood and it's shareholders, employees and stakeholders over. A formal offer of45p per share ought to do it and create 'goodwill' all around.
Otherwise, Sidara runs the risk that if the Deloitte review is not so bad, Wood obtains an extention to the waiver, Wood sorts out its finances and wins a few more large contracts, then Wood may not need Sidara after all - and it is Wood who leads Sidara up the garden path rather than vice-versa.
Sometimes it is good to play the 'long game', which Sidara has done well to date (especially in eroding Wood shareholder confidence in the short term). However, sometimes, you have to cut to the chase and make a good offer first up in order to be assured of winning the game.
One thing is for sure, with Wood, it definately is not over til the fat lady sings!
Sign In
Follow the stocks
