TENON

[Risk]

"a takeover will not be plain sailing..." implies to me that the price has to be right for a takeover to succeed.

[willy_wonker]

Ari, thanks for the interesting article. Do you have the site link? Cheers.


Disc: holds TEN

[Risk]

http://www.stuff.co.nz/stuff/0,2106,2865752a13,00.html

[willy_wonker]

1. Consolidation of industry.
2. Target for takeover.
3. Further capital return to shareholders.

Sounds abit like the freight industry with stocks MFT and Owens.


disc: holds TEN & TENPA

[willy_wonker]

TEN UPGRADE PROFIT PROJECTION by 30%


TEN08/04/2004FORECAST REL: 0951 HRS Tenon Limited FORECAST: TEN: Improved Projections Auckland, 8 April 2004 - Tenon announced today that the earnings of itscontinuing processing, marketing and distribution businesses for the year to30 June 2004 were expected to exceed the projection contained in theexplanatory memorandum in connection with the forest sale, which wasforwarded to shareholders earlier this year. The major contributor to thischange is the price recovery of one of the Company's major exports to theUnited States, Moulding and Better lumber, which has moved off the cyclicallows reached in June 2003. Tenon now projects earnings before interest, tax, depreciation andamortisation ("EBITDA") for the continuing operations to be in the range ofNZ$58-$60m, inclusive of the attributed realised foreign exchange gains ofapproximately NZ$7m announced last month, compared to the NZ$45m projectionin the explanatory memorandum. Net profit after tax for the continuing operations for the same period,inclusive of the NZ$7m foreign exchange gains, is now projected to beapproximately NZ$32m, compared to the NZ$21 million projection in theexplanatory memorandum. Operating cash flow is also expected to exceedprojection although not by the same magnitude as business growth is resultingin increased working capital requirements. The net result after accounting for the discontinued forest segment tradingresult and the loss on sale of the forest assets is expected to be a net lossof approximately NZ$33m. Commenting on the earnings upgrade, Chief Executive Officer John Dell said,"notwithstanding the higher New Zealand dollar, the continuing business ofTenon has performed above expectation during the first quarter of the 2004calendar year. In addition, the price for Moulding and Better lumber is nowUS$1,240 per thousand board feet which is significantly higher than theDecember 2003 level of US$1,050 per thousand board feet assumed in theearnings projection contained in the explanatory memorandum. This priceincrease, together with the continuing sound performance from the Company'sseparate United States distribution businesses, has more than offset theimpact of the stronger New Zealand dollar. The structural consumer solutions business that primarily services NewZealand continues to enjoy robust demand. However, as a result of the highNew Zealand dollar, competition has been refocused into the New Zealandmarket, which is likely to reduce earnings for this business segment toslightly below the projection for the period to 30 June 2004." FORWARD LOOKING STATEMENTS: There are statements included in this releasewhich are "forward-looking statements" as defined in the U.S. PrivateSecurities Litigation Reform Act of 1995, and they are included herein inreliance upon the safe harbours created by that Act. As forward-lookingstatements are predictive in nature, they are subject to a number of risksand uncertainties relating to Tenon Limited, its operations, the markets inwhich it competes and other factors (some of which are beyond the control ofTenon Limited.

[cazzer]

see on NZOOM reported that Rubicon have made a partial takeover bid for Tenon at $1.85. No other confirmation of announcement that I can see.

[willy_wonker]

Willy is a happy chappy flappy.

http://onenews.nzoom.com/onenews_det...-1-453,00.html

RBC is wasting their breath expecting TEN shareholders to sell at $1.85. COME ON !!!! More like over $2.00 per share. []

[Taijon]

Good spotting cazzer. There is no announcement from RBC in the NZX announcements today. Trust RBC management to go public before advising the authorities. These are some of the same people who ran FFS before the demerger and I for one don't want them getting back in control. We might never see the 2nd capital return!!!!

[digger]

At $1-85 that is 31 cents on the preconsolidation scale where most of us i would imagine bought our holdings.
Haven't heard anything about such a takeover. Sure it is not just an assumption???

[Prophet]

RBC have a lot of cheek making such an offer. An independent valuation will see an offer price of 1.85 as laughable.