I think City Developments are now restricted from increasing their offer for a period of six months (or is it 12?), unless another bidder comes along, which seems unlikely given that City have a majority stake.
I guess the share price twangs about a bit first as people take in what's happened, then drifts along for a few months.
Thankyou poleaexe you were spot on.
No RNS here but there is mention from stockmarketwire.
Noticed Fridays drop of 5% to 537p
I'm not bothered ( should i be ? )
As the city guys who wrote the letters you brought my attention to must think its worth more and chose to hold it.
Do you think it will be a buying opportunity as it drops.
From what you have previously posted they are not allowed to increase offer ?
At the moment the offer looks set to fail. That 620p is not money in the bank!
"As set out in the Offer Document, the Final Offer is conditional, amongst other things, upon the Offeror securing valid acceptances of the Final Offer in respect of more than 50 per cent. in nominal value of the Offeree Shares not already owned by the CDL Parties and of the voting rights attached to those shares. This Acceptance Condition is not waivable by the Offeror.
As at 1.00 p.m. on 23 January 2018, being the First Closing Date of the Final Offer, valid acceptances of the Final Offer had been received in respect of a total of 49,972,306 Offeree Shares, representing approximately 44.21 per cent. of the Offeree Shares not already owned by the CDL Parties as at 8 December 2017, which the Offeror may count towards the satisfaction of the Acceptance Condition. "
"A group of shareholders in Millennium & Copthorne Hotels PLC (MLC.LN) said on Thursday that they have written to the company's board of directors to say that they won't tender their shares to City Developments Ltd. (C09.SG), blocking it from reaching the acceptance threshold of its takeover offer.
The shareholders--comprising International Value Advisers, LLC; MSD Partners, L.P. and its affiliates, and Classic Fund Management AG--said they represent an aggregate of 37% of the shares subject to the offer by City Developments, which they said was highly opportunistic and significantly undervalued M&C. "
Sorry, I think the final, final deadline set by City is 1pm on 26th Jan, not 29th Jan, although they could decide to give up as early as 23rd. Perhaps they will get sufficient uptake, just there's a reasonable degree of doubt.
Thank you Poeaxe i did not know that i would guess however that the three shareholders you refer to are smarter then me, hold much more and must think the shares are selling to cheap.
I fell better about my buys now.
Patience is my key investment idea.
My reading is that the offer may not get the required level of acceptance, being 50% of the approx 35% they don't already hold.
You realise a group of three of the shareholders wrote to the company on 14th Dec saying they won't tender their shares? That was following the 'final offer' on 8th Dec. Their holdings amount to almost 13%. Their reasoning is that the offer grossly undervalues the company and is significantly below NTAV (City argues this is irrelevant). Add to this the other institutional holders and funds who simply won't vote and you see the 50% acceptance is not a done deal. Of course, this might just be posteruring but I doubt the three shareholders would change their minds because they knew City had already made their final offer, which I believe is legally binding for 12 months unless another bidder turns up.
City have stated that the first deadline for acceptances is 1pm on 23rd Jan. They might extend this but they've stated they won't extend beyond 1pm on 29th Jan.
So you see, there is some short term risk, which is of course why they're trading at 11% discount to 620p. It's likely to move by 15% or so either way in about 10 days time, so a bit of a dice throw. The sort of thing to considering betting both ways, if you can get tight enough guaranteed stops.
After all Poleaxe is this just not the Singapore owners wanting to take this private.
I'm surprised they are not hovering them up . ( maybe they are not allowed )
Why would holders not except the offer as it gets better ?
I topped again this morning @ 553p before looking on here, thanks for the info Poleaxe .
I know Collings Sarri Statham researched this ( not many brokers on it ) whats your interest ?
I see there are years between your posts on this site.
One you had a view on ( it was a wile back ) was MRO.
As a side what your view now ?
That's fine, as long as you understand the 600p + 20p are not in the bag and there's a not insignificant downside risk of City failing to gain the necessary acceptances. Perhaps they will. I have my doubts.
That's also if you're prepared to play the longer game and hope for another bidder, or for City to return with an enhanced offer in 12 months.
I got the other 1/2 of 160p limit .
Then thought i would double whole holding @ 158 and that lifted.
I bought in here expecting an offer it came , maybe if your fear comes true Poleaxe another offer will come some time later.
Not a fan of stops myself.
Did not check e-mail from ( D ) or take note of chart.
Sold higher then limit 563p ( 562p )
That made me think.
Mistake rang to find offer had been increased to 600 + 20 special div.
Managed to buy back at par after i hour.
Plus got 1/2 again few mins later at a limit id set before placing the par @ 560p
So just in case anyone else missed the higher offer posting.
Can penny shares be 'shorted' ?
....Yes , all the time...but the mm's need to 'borrow' your shares to enable the 'bet' to be transacted. IT's a bet rather than an investment and CANNOT 'win' for the 'shorter' unless the price falls.!
IF the stock looks healthy and unlikely to fall, then the shorter will almost certainly 'lose'.....unless he can 'help' the stock down....Now how the hell can he possibly do that ?
* OFF TOPIC but important that all AIM investors understand the pitfalls of investing in stocks that are being shorted down to rock-bottom levels?
So you think that is 'cute', now you can buy at the lowest sp for months?.........you've gotta be kidding...read on:-
~ *3,995 voted so far ~THEY CAN'T ALL BE WRONG?
(That's a lot of irate investors?)
# Thanks to all those that have supported this HMGovt epetition !
Many pi's are questioning the validity of 'short selling' and are voting in their thousands....the people have spoken, they are feeling hurt and disenfranchised.
The 'not so quick' and 'unsavvy' cannot be blamed for having their life's savings 'shorted' away just because they cannot spend hours on end glued to their computer screens. Having to work during trading hours, investors cannot keep in touch with hourly movements on stocks that they have chosen for their retirement and had them locked into ISA's. What gives shorters the given right to play down stocks at their own leisure thus profiting at everyone else's loss....on perfectly good stocks with sound fundamentals?
..campaign heading for 4,000 !
HMGovt epitition to make short-selling illegal (or better regulated?)
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