Member Info for regvarny

Bertles, Serco move could have been in the planning for months. Capita request for offerrs for ESS likewise. I dont rule a plan B from Capita for a combination. No smoke without fire. Is it a coincidence Serco reporting financial guidance ,the day after Capita ESS story broke. Black Rock and Fidelity are major shareholders in both Schroders and Serco. Reg

Bertles, I disagree. Serco could be clearing the decks to buy either outsourcer. Both Capita and G4S are in the frame. Group 4 may be too bigger mouthful for Serco with lower margins. Schroder may be brokering a deal between Capita and Serco. I feel we will find out sooner rather than later. Capita need a plan B. Reg

Bertlles/Jimmy, excellent arguments for and against. Bertles sp factors in your argument. JImmy like your points about bad PR and company should stick to what its good. I might add Sercos margins @ 4% would benefit from being part of larger turnover business. Tesco vs Iceland. Size matters. Reg

Jimmy, I like it. sp = £1.10p. Cheers Reg

Jimmy thanks combined group 60/40 split £2.2 billion mkt cap = .55p per share. I pedicted .60p. Cheers Reg

I believe ESS report yesterday, may flush out more bidders who have been running slide rule over Capita. Serco Capita looks like it could be the one in the driving seat. Reg

Jimmy, this merger would tick all the right boxes. Cross selling oppertunities, new international sales channels, stronger balance sheet. What offer price do you predict. Reg

Jimmy, Serco can afford to pay more for Capita being a fellow outsourcer. Schroders bats for Britain. I like the idea of creating a British titan in outsourcing. Rule Britannia Reg

Jimmy, the merged company would have large synergies, a stronger balance sheet, lower cost of sales. WIN WIN WIN. Reg

Jimmy, Serco shares major shareholders Jupiter and Blackrock with Schroders. Reg

Jimmy, yes totally concur. All share Capita takeout. Schroders Kingmaker. Ill lkie to check and see if Schroders are major stock holders in Serco. Cheers Reg

Jimmy, yes very interesting point you make, another support group with a mkt cap x4 times Capita making an un scheduled trading update the day after Capita ESS news. . No smoke without fire they say. Yes looks like Capita are in play. Reg

Thanks Jimmy, ill take a look. G$S is another support group in play. Cheers Reg

Leaked news yesterday, suggests Capita management are testing markets appetite for accepting lower ESS offer. Largest Capita shareholders Schroders who have rapidly increased their holding in Capita over last month from .27p will want a return for their money. So rights issue is not a path they would advise management to pursue. What prompted Schroders rapid stakebuilding. I would guess CVC overtures reported in Mail last month. Reg

Compound, IMHO news was leaked yesterday, to test markets appetite for Capita accepting lower offer for ESS. I believe management are reviewing their options right now. Next RNS could be to accept lower offer. Reg

Dave, I agree

Dave, Schroders will not want to throw more cash at Capita through rights issue/share dilution. They are cutting off their noses. No Schroder Veritas proxy will act as kingmakers in contested takeover. I still see .70p take out price. Reg

East. we all have a point of view. Reg

East, yes but could also be PR exercise to lower our ESS sale vlue expectations. Nothings official yet.

Dave, I think the use of words like sources close to Capita is not a leak but Capita Management testing the water before committing to accepting a lower offer for ESS. We could all be surprised at next RNS. People who have sold out today may feel sick as a Parrot in morning. Reg