Member Info for Kingalf

Anyone know if Huw is scheduled to appear on Proactive investor in the next week or so ?

A snipet from an article in the ft by Merryn Somerset Webb.
“The chances of it being bid for are now 100 per cent,” points out Smithers of Pelham Smithers Associates.
IMHO the board could well be sitting on a new bid, hasn't been leaked this time as its more in line with fair value. Time will tell !!

Yes I appreciate that, but if half the patients suddenly made a remarkable recovery, would that not prompt them to speed the whole process up ?

I'm of the opinion that if this was the magic pill (excuse the pun) surely the day to day results would have been glaringly obvious and the whole process would have been fast tracked.
Or is that not how it works ?

Yesterday afternoon was dominated by the shorts panic buying , today we've seen a correction but the main event of a higher bid / multiple bids is still to come.
IMHO we won't have to wait much longer.

falklandinvestor
Yesterday's accidental sale turned out to be a good thing after all.

falklandinvestor, it's never a mistake to take a profit, you could always dip your toe in again on any pull back

Sorry freedomfighter, I'm a little confused with your post.
Amazon has no option built into the partnership allowing them to purchase Morrisons shares at 1.90p.
Do you still have a link to the article you are referring to.
Thanks

Wm Morrison (MRW)

Shares in the grocer climbed above 230p, despite the rejection of a takeover bid from a US private equity firm

Supermarkets are typically associated with cutting prices wherever possible. For more than a decade, this operational mantra has been mirrored in the gradual downward drift in the sector’s share prices.

But that suddenly changed this week, after an unsolicited takeover approach for Wm Morrison pushed up shares in the Bradford-based grocer by more than 31 per cent to 234p. That was beyond the non-binding, 230p-per-share offer tabled by private equity firm Clayton, Dubilier & Rice (CD&R) last week, suggesting the market expects a bidding war to emerge.

News of the offer, put to Morrisons’ board on June 14, broke last weekend, prompting the supermarket, to say CD&R had “significantly undervalued” the business and its prospects.

The private equity group has until July 17 to make a firm offer. But there is speculation its interest will spark a bidding war.

Potential contenders include US private equity firms Lone Star and Apollo Global Management. Both firms were in talks to buy Asda from Walmart last year, but eventually lost out. After including £3.2bn in net debt, CD&R’s offer gives Morrisons an £8.7bn enterprise value.

A private equity approach is also likely to reignite speculation that Amazon could enter the fold, given it has an established partnership with the grocer. The ecommerce giant bought US chain Whole Foods for $13.4bn (£9.7bn) in 2017.

This is a strong validation for a hitherto unloved investment story. The prospect of a higher bid or bids seems likely. Alex Newman and Lauren Almeida

We will definitely have the results next week, could be as early as Monday morning.
Transformational news ?? Who knows
Judging by the current sp action, it's certainly reflective of the movements prior to the share placement news ie selling into any rallies.
I'm not expecting anything spectacular but I truly hope Im wrong especially for the long term holders.

CD&R will hardly give up at the first hurdle, why employ Sir Terry Leahy as an advisor if you didn't have a firm commitment to get into this sector.
With Lone Star, Apollo Global and Amazon still potentially to join the party, and the threat of the shorts exiting their remaining position on any subsequent/ likely bid, its my honest opinion that the risk reward clearly favours the bulls.

For a second I thought this article related to the French government's opposition to the 16.2 billion-euro ($19.6 billion) takeover of French supermarket chain Carrefour by Canadian convenience store group Couche-Tard.
Post Brexit, the UK cannot be seen or afford to adopt European protectionist policies.

I personally don't see there being any issue with the competition authority ruling, as there is no impact from competition from this bid.
I can see a few left wing political issues on the horizon but at the end of the day, this is a PLC, they have repaid all government financial support so they should be left alone.
If Morrisons is such a vital company to the UK from a jobs perspective,why aren't they given tax breaks to reflect this.

Quote from Investors Chronicle who still rate Morrisons a Buy at current prices.
A private equity approach is also likely to reignite speculation that Amazon (US:AMZN) could enter the fold, given it has an established partnership with the grocer. The e-commerce giant has committed to supermarkets as a long-term growth strategy, having bought US chain Whole Foods for $13.4bn (£9.7bn) in 2017.

Should pick up again tomorrow afternoon and into Friday in anticipation of further bid news going into the weekend.

Let's not forget the deep pockets of the shorts, they'll be working frantically to stop this going any further and will more then likely employ politicians to do their bidding (excuse the pun).

Morrisons should consider doing it themselves and return the funds to shareholders via a special dividend.
Management would keep control, secure jobs as well as still supporting the community.
A win win all round.

Shorts have taken a hit today but things could get so much worse for them.
Just need a few more buyers in, eventually their stop/ loss kicks in forcing the sp to at least £3.00.
Could the the UK equivalent to Gamestop.

Sorry but what part is great about this news ???
Nothing that we didn't already know in this announcement apart from now having the certainty that no-one dropped dead taking it.
A big thank you to Nobby for a clear explanation yesterday, its pretty much what you said.

Maybe my Cynic post was to close to home, someone has put in a complaint and had the whole thread removed.