STU - Steel & Tube Holdings

[Snow Leopard]

With FBU the usual benefit from the lovely synergies and rationalization is a 'non-cash' write down of goodwill

[100101]

Just need another company to pop in a takeover offer and its game on.

[boysy]

https://i.stuff.co.nz/business/10757...uy-steel--tube

Fletchers sound fairly keen on STU some of those premium figures quoted seem a bit disingenuous re being a .... premium over the CR price - not sure that means much to most holders ....

[winner69]

With FBU the usual benefit from the lovely synergies and rationalization is a 'non-cash' write down of goodwill

So true .....always pay far too much

But this time it’s different

[King1212]

Well..if the market thinks STU is worth more than $1.70...then it should trades more than that..so time will tell....wait and see ...next couple weeks. AGM is in 4 weeks time.

[Timesurfer]

Thanks Timesurfer, lets get that price back to where it belongs. Already bought too many at $1.05 so cannot help but anyone else keen to jump on board will help the cause. For what its worth if they do get the guidance, $1.23 will look cheap.

Cheap as chips.
Can't say we didn't give everyone a heads up, along with Balance (thanks for the Directors dipping in notice).

Nothing like getting home from a days work to find you have made the best part of a months wages

[boysy]

assumes you are selling, could be closer to 2 months wages if fletchers really wants in .....

[boysy]

https://www.nzherald.co.nz/business/...ectid=12136404

Fletcher dropped 1.5 per cent to $6.48 after its initial bid for steel products maker Steel & Tube was turned down as too low. Fletcher offered $1.70 a share, or $284m, and has the support of shareholders with 20 per cent of the company's stock. CEO Ross Taylor says he will keep pursuing the company, but was coy on whether he'll raise the bid.

Lindsay said the takeover bid was a surprise with other firms seen as more likely targets.

"The market was quite surprised that they would look to spend quite a lot of their capacity in bidding for Steel & Tube," he said.

Steel & Tube, which is outside the top 50, climbed 16 per cent to $1.56, still below the non-binding offer.

[Scrunch]

https://www.nzherald.co.nz/business/...ectid=12136404

Fletcher dropped 1.5 per cent to $6.48 after its initial bid for steel products maker Steel & Tube was turned down as too low. Fletcher offered $1.70 a share, or $284m, and has the support of shareholders with 20 per cent of the company's stock. CEO Ross Taylor says he will keep pursuing the company, but was coy on whether he'll raise the bid.

Lindsay said the takeover bid was a surprise with other firms seen as more likely targets.

"The market was quite surprised that they would look to spend quite a lot of their capacity in bidding for Steel & Tube," he said.

Steel & Tube, which is outside the top 50, climbed 16 per cent to $1.56, still below the non-binding offer.

Yes interesting wording from the FBU announcement "Through this process shareholders, who collectively own more than 20% of all Steel & Tube shares on issue, confirmed their position that the Board of Steel & Tube should, in good faith, progress the development of the proposal with Fletcher Building, with a view to it being put to Steel & Tube shareholders"

This doesn't say they will accept at $1.70, rather that they would be receptive to a proposal to decide on (or accept if FBU ups their offer price).

[winner69]

https://i.stuff.co.nz/business/10757...uy-steel--tube

Fletchers sound fairly keen on STU some of those premium figures quoted seem a bit disingenuous re being a .... premium over the CR price - not sure that means much to most holders ....

Not disingenuous boysy, only doing what you do boysy — promote the stuff that best supports your story

Isn’t 58% premium to the weighted average capital raise price of NZ$1.07 tremendous return in such short time. Cool eh and many of us on here happy it eventuates.

What you make of the transaction multiple of 12.3x FY19 EBIT guidance when the average over the last 5 years of 9.2x. Without a takeover on the table you’d be rapt with a share price of $1.70, even with the touted improved performance that still has to be delivered in future years

Anyway we might get a bit more or we will have a chance on STU performing ...or take the money now and run

What you doing Blackpeter?