STU - Steel & Tube Holdings

[Snow Leopard]

You got your wish - sp now knocking on $1.30

OK then . Now for my other two wishes....

Just one left now

[steveb]

I must admit it will be interesting to see what FBU have to say,hopefully they are busily getting a response together.Their SP is just drifting, down 8c today.

It's a forgone conclusion of the EBIT @ $25 mil,it's really a matter of how much icing is on the top!

[winner69]

Be fun if Fletcher’s go the hostile way

Haven’t had a good stoush on the NZX for a while ....things are just too friendly these days

[Balance]

Be fun if Fletcher’s go the hostile way

Haven’t had a good stoush on the NZX for a while ....things are just too friendly these days

Well, STU directors who topped up at $1.05 and $1.23 are not accepting the offer so FBU either withdraws (unlikely) or goes aggressive (likely).

Unlikely because FBU would look donkey stupid if this is their way of handling a takeover - no backup plan or counter offer. Credibility at stake.

[steveb]

The proposed acquisition would need clearance under the Commerce Act, which would take some time to work through due to Fletcher’s vertical presence and significant size in several steel product markets.

FBU would look a tad silly(again) if they went aggressive and the got shafted by the commerce commission !

[Balance]

The proposed acquisition would need clearance under the Commerce Act, which would take some time to work through due to Fletcher’s vertical presence and significant size in several steel product markets.

FBU would look a tad silly(again) if they went aggressive and the got shafted by the commerce commission !

If FBU made the indicative offer without considering competition issues, then they deserve to continue to slide down the slippery slope.

[steveb]

here you go from FBU

https://www.nzx.com/announcements/324808

[King1212]

Well, STU directors who topped up at $1.05 and $1.23 are not accepting the offer so FBU either withdraws (unlikely) or goes aggressive (likely).

Unlikely because FBU would look donkey stupid if this is their way of handling a takeover - no backup plan or counter offer. Credibility at stake.

what do u think the fair value of the offer balance?

[boysy]

Interesting announcement from FBU certainly seems like they are willing to progress and negotiate a higher offer in due course wonder if any other suitors are out there ...

[Balance]

what do u think the fair value of the offer balance?

irst offer is never last offer so $2 is on imo.

The way to assess this is that FBU can debt fund itself at less than 5% pa so even if FBU pays $2 per share ($330m), a takeover of STU will be earnings positive : $25m EBIT less $15m interest = $10m additional EBIT for FBU

$330m @ 4.5% pa = $15m interest or at 5% = 16.5m

Plus all the benefits from the lovely synergies and rationalization to come!