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  1. #551
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    Quote Originally Posted by Balance View Post
    OneSteel sold its 50% of STU in 2012 at $2.05.

    Now Bluescope Steel buys at $1.75.

    Starts getting confusing?
    that was 6 years ago....business conditions were different at that time. 6 years ago...Auckland houses were just around 400k....

  2. #552
    Legend Balance's Avatar
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    Quote Originally Posted by King1212 View Post
    that was 6 years ago....business conditions were different at that time. 6 years ago...Auckland houses were just around 400k....
    True and cost of building has gone up and the building sector (FBU, Mainzeal, Evert, STU, MPG etc) has gone and buggered themselves up!

  3. #553
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    Quote Originally Posted by Balance View Post
    NZ Steel,subsidiary of BlueScope Steel, competitor of OneSteel, is the buyer.

    Now will they go for the rest?
    Bluescope Steel is capitalized at A$8 billion.

    So a takeover will not be a problem from a funding point of view.

    17.5% does not really give NZ Steel much by way of leverage.

  4. #554
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    Quote Originally Posted by Balance View Post
    Bluescope Steel is capitalized at A$8 billion.

    So a takeover will not be a problem from a funding point of view.

    17.5% does not really give NZ Steel much by way of leverage.
    It gives them a blocking stake though. But agree, Bluescope has the spare change (they have been doing very well of late) to buy all of STU. I am surprised by this morning's trading and price action. I would have thought that backing up the truck would be the way to go. Either STU get taken over at $1.75 plus or Bluescope come and influence the board, got to be good for STU longer term. I guess its the blocking stake that has potential buyers worried? Or am I over thinking things?

  5. #555
    Legend Balance's Avatar
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    Quote Originally Posted by blackcap View Post
    It gives them a blocking stake though. But agree, Bluescope has the spare change (they have been doing very well of late) to buy all of STU. I am surprised by this morning's trading and price action. I would have thought that backing up the truck would be the way to go. Either STU get taken over at $1.75 plus or Bluescope come and influence the board, got to be good for STU longer term. I guess its the blocking stake that has potential buyers worried? Or am I over thinking things?
    Nope - you are not overthinking at all.

    Milford has sold out on the basis that a takeover is now unlikely (otherwise, they would have negotiated an escalation clause) and they do not see value at more than $1.75.

    That's why others are selling.

  6. #556
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    falling knife .

  7. #557
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    Surely the only way Bluescope could go forward would be through a hostile takeover.They could hardly approach STU with $1.75cps as they have already rejected that price.If the 5c dividend is still on the cards,then Milford have not done very well out of this if there is no escalation clause.
    So to me it looks like a blocking position,if FBU still want to do something they would now have to go to Bluescope,so win win for Bluescope.

  8. #558
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    Quote Originally Posted by whatsup View Post
    falling knife .
    I guess a typical situation where short term hype is uncorrelated to fundamentals.

    FBU (though admittedly not the best example for a successful company) thinks the share is worth $1.95;

    Blue Scope (actually a quite succesfull steel producer) thinks the share is worth more than $1.75 (and puts their money where their mouth is);

    Market believes it must be worth nothing, given that Milford sold out at $1.75;

    Go figure ... might be a good time to accumulate ;
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  9. #559
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    Quote Originally Posted by steveb View Post
    Surely the only way Bluescope could go forward would be through a hostile takeover.They could hardly approach STU with $1.75cps as they have already rejected that price.If the 5c dividend is still on the cards,then Milford have not done very well out of this if there is no escalation clause.
    So to me it looks like a blocking position,if FBU still want to do something they would now have to go to Bluescope,so win win for Bluescope.
    If it's a blocking stake, why buy all Milfords stake and not just offer to buy 10.1%?

  10. #560
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    Quote Originally Posted by Balance View Post
    Nope - you are not overthinking at all.

    Milford has sold out on the basis that a takeover is now unlikely (otherwise, they would have negotiated an escalation clause) and they do not see value at more than $1.75.

    That's why others are selling.
    In your opinion mate if one were looking for a ticket to ride this "dance of the mutts" what would be an attractive entry point ? $1.40, the same price as before this whole fiasco started unfolding ? (keep quiet in the cheap seats snow leopard, I'm not asking you).
    Last edited by Beagle; 17-10-2018 at 10:59 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

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