The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
thanks for posting the links -- very reassuring!
Still would not buy here at the moment though...need agreement first between CWU and R.M on pay deal.
If an RNS should appear declaring that Kretinsky has bought again...then that would perhaps persuade me to have another little peck at it myself.
But failing that...I think I will just sit on my hands for the time being.
I am of the opinion that the very least the union would settle for is a minimum of say 4.75% with a further couple of percentage in January...and of course another negotiated pay rise in April to come on top of all this.
Even so I am not fully convinced Pullinger would accept any of the above. Mores the pity.
there is a difference between 'mandatory' and 'voluntary' offers.
Leave it with you gentlemen...off to work now.
'Under the Takeover Code, when a buyer acquires “control” of a target company it must make a cash offer to all shareholders offering to acquire their shares at the highest price paid in the last 12 months.'
Does that mean the highest price the bidder paid...or is it the highest price the s.p made?
Some sites I have looked at state it is the highest price that the s.p was at during the 12 month period.
Happy to be corrected.
Rule 9 of the Takeover Code requires a general offer to be made to the holders of any class of equity share capital and also to the holders of any other class of transferable securities carrying voting rights in a company which is subject to the Takeover Code (unless the Takover Panel consents otherwise) when:
Any person acquires an interest in shares which, together with shares in which persons acting in concert with that person are interested, carry 30% or more of the voting rights of the company; or
Any person, together with persons acting in concert with that person, is interested in shares which carry between 30% and 50% of the voting rights of such a company, and such person, or that person’s concert parties, acquires an interest in any other shares which increases the percentage of shares carrying voting rights in which that person is interested.
An offer under Rule 9 must be made in cash and at the highest price paid by the person required to make the offer, or any person acting in concert with that person, for any interest in shares of the company during the 12 months prior to the announcement of the offer.
Except with the consent of the Takeover Panel, a Rule 9 offer can only be conditional on the bidder receiving acceptances to give it, and persons acting in concert with it, more than 50% of the target’s voting rights.
Can the obligation to make a mandatory offer be waived?
There are a number of circumstances in which the Takeover Panel may grant a dispensation from the obligation under Rule 9.1 to make a general offer to all the shareholders of a company:
Where the formal whitewash procedure applies in certain circumstances as set out in the Notes on Dispensations from Rule 9 and Appendix 1. This requires a vote by independent shareholders.
The Takeover Panel may also grant a waiver of Rule 9 in certain other situations such as rescue operations where a company is in such a serious financial position that it can only be saved by an urgent issue of new shares or where shares or other securities are charged as security for a loan and, as a result of enforcement of the security, a lender would incur an obligation to make a general offer under Rule 9.1 and certain other limited circumstances.
'Under the Takeover Code, when a buyer acquires “control” of a target company it must make a cash offer to all shareholders offering to acquire their shares at the highest price paid in the last 12 months.'
If Kretinsky was to make a move right now to acquire this company he would be required to pay over £6.00 a share...usually an added bonus per share is included as an extra incentive to sell.
If he was to wait until this coming July the price drops to £5.26 a share...that would be a saving of over three quarters of a billion pounds!!
If he is lucky and the price stays subdued till at least the end of next January he gets the company almost twice as cheap again...best price would be £4.48.
And if he is really fortunate and the price absolutely does go to hell in a handbasket...well...lets just say he really would be quids in.
Like I have always maintained, perhaps he never intended to try and acquire this company right from the offset...but if the opportunity suddenly, and unexpectedly, presented itself on a plate?
Like the old saying goes: "never look a gift horse in the mouth".
July might just be very interesting. An outside chance perhaps?
with Chris Webb and Terry Pullinger...anyone hoping here for a quick resolution is going to be rather irked to say the least. This will drag on for months.
The company has played, what in Pullinger's words amounts to a tit-for-tat, 'the dispute resolution' card regarding their own grievance; as Pullinger points out, there is no real other dispute...it is all being covered in the 'Pathway To Change' agreement.
As usual R.M is going to make use of every stalling tactic they can employ...only to be expected going by past form I should have to say.
is quite simple: to pay for the posties pay rise.
And does anyone really think that the great British-Public is going to support or have any great amount of sympathy for any one particular group of key-workers, however valued and appreciated their efforts are or have been, for a strike in support of an inflation busting pay increase?
More likely to see that particular group of people as being unrealistic and overly greedy I would have thought.
5%? Yes...perhaps. 9%? Doubtful if the average working person is going to think that's a fair and legitimate demand.
update by Chris Webb...he mentions something about Pullinger making an appearance. Will log back into Facebook on the CWU page at seven bells.
well I thought there was...appears as if there might not be.
Will tune in at seven just to check it out.
Live update with Terry Pullinger to discuss the latest developments concerning strike action.
when a company's stock is going cheap.
One other thing that has to be mentioned...annual buybacks are often practiced by huge mega-cap companies like Apple who quite regularly split their shares.
Makes one wonder if the R.M board has ever considered splitting this stock; although it has to be added: a stock is, for the most part, usually only split from a position of strength.
Something for the future perhaps?
but that doesn't really explain the complete apathy being shown towards this stock by prospective investors.
I remember years ago being called up for jury duty.
At the start of the trial the prosecutor stood before the court, and with great aplomb and gusto had a bin bag (yes...a big, black bin bag) rammed full of cannabis resin dumped on a table in front of us. "Exhibit one", he grandly announced. In todays money probably worth hundreds of thousands of pounds.
The defensive, doodling away, never even stirred...nor so the casual young man staring at the ceiling.
On and on the prosecutor went with the most damning of evidence...the young man yawned and stretched...his legal hound began clipping his nails I believe.
The prosecutor than began to detail the scurrilous young rascal's arrest...on a bridge somewhere it was.
At that point the defence leapt up and announced he had a point of law to discuss. The judge called an early lunch.
After reassembling after our leisurely luncheon the judge apologized...and then dismissed us.
Why? Quite simple...the bungling coppers had no search warrant when they pulled his car over on the bridge; it would seem he was a taxi driver. In the boot was a luggage bag containing the swag; the young man claimed a previous customer must have left it there. No problem, the overly zealous detectives decided to open it anyway -- Ooopppssss.
Smirking Samsung might also have an ace up the sleeve...their own 'oh dear you have just shot yourself in the foot' similar sort of thing.
They certainly aren't rushing to the table to negotiate are they.
Like Julius Caesar once said after finally subduing the Brits: "I lost every battle...apart from the last one -- the most important one!!"
how come the s.p has not gone stratospheric?
So just WHAT is this stock worth with a positive outcome...42 pence?
Even when it makes the papers it hardly causes a ripple.
Why the complete disinterest?
All rather baffling as far as I am concerned.
AngerSharkz, I really don't give a cuss about the shorters...they make us all money in the long term.
Any company that is rich in land and buildings; has a sustainable business with the opportunities to expand into burgeoning new markets (disregarding any short term readjustments -- online buying will only get massively bigger!) and is an intrinsic part of UK commerce, needs not worry in the long term.
As private investors in Royal Mail (or any other company that has good, sound fundamentals) there is only one long term consideration: am I unduly bothered if I pay x amount of money to buy Royal Shares to then see the s.p crash down by another pound? No...unless of course you get overly greedy and unwisely buy too many at any one time.
I just had a little nibble at £2.97...and if it sinks to £2.53 next week due to the fear of a strike...I might well buy some more. And will buy even more as it slips even further perhaps.
And whats more important -- so will Kretinsky!!
Royal Mail a long term failure? Doubt it myself.
And I stick to the assertion I have always extolled here: Kretinsky probably did not, from the beginning at any rate, set out to put himself in a position to buy this company...but if its going to be handed to him on a plate...he may very well reconsider.
What price would these shares then be if he starts to quickly accumulate towards that 30% takeover threshold? Not £2.97 that is for sure.
for that last opinion I have just proffered I most certainly would.
Daniel Kretinsky!!!
Always accumulating. Never sells. Why?
On the strength of that, just bought a few myself...and will keep buying all the way down...and all the way back up also.
Those results were not bad at all...surprisingly.
Massive over-reaction fuelled by the same fear and panic that is crashing the rest of the markets...only here of course you have the added consideration of the high likelihood of a devastating strike.
Kretinsky is watching. He is waiting. And if, or perhaps WHEN, the opportunity comes...he won't be found lacking either.
Should that not read: increase in Cash Flow, re-inflating depleted cash cow........?
Pullinger remarked on his last update on Facebook that some union members (down South I should imagine) were proposing 20%. 20%? Are they insane?!!
Even the 9-10% increase he seems to be favouring is total nonsense. But there again...who knows?
I have been wrong plenty of times before when making assumptions concerning R.M...but 10% even?
Can't see that either. 4.75 -5% (no strings attached) would be more than fair in my opinion.
BoracicLint, many thanks...enjoyed reading your 21/03 post.
I was thinking somewhere around about £2.00 a share also.
anyone got any suggestions as to what amount of money might be involved?
Would prefer reasonable guesstimates only please and not 'pie-in-the-sky'.