"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?)
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.