MET - Metlifecare - one for the fundies?

[limmy]

So were the 10% sold to ‘friendly’ parties or those hoping to do better

http://nzx-prod-s7fsd7f98s.s3-websit...373/315538.pdf

What does this all mean, in layman terms ?

[winner69]

What does this all mean, in layman terms ?

When they announced the deal EQT said that institutions with 22% of the total shares in MET had said they would vote yes to the deal (on top of NZ Superfund signing over their 19.9%)

Since that announcement those who had the 22% appear to have reduced their holdings to about 12%. Those instos still can buy and sell more but have said they will likely vote yes (ubless there’s a bigger offer) but they can change their minds.

Good that EQT are telling us this ...why, only they know why ,.,..maybe they are getting worried they might not get to 75%

[limmy]

This sounds like good news to mum and dad investors ?
i.e. the offer price may have to be increased ?

Thanks for the explanation Winner69, I can understand the announcement better now, second time around reading it.

[Beagle]

An interesting development and curious announcement. Stating the obvious but I would think this slightly lowers the chances of them getting to 75% and slightly enhances the chance of them having to make a higher offer.

[Onion]

An interesting development and curious announcement. Stating the obvious but I would think this slightly lowers the chances of them getting to 75% and slightly enhances the chance of them having to make a higher offer.

I don't follow the argument that it enhances the chance of a higher offer.

At least some of the largest shareholders have been bailing, willing to accept a price below the $7 on the table. Doesn't that signal what the [presumed] sophisticated investor is thinking? I.e.

$7 is the best that we can get; but there is no guarantee of success of that offer, nor is there any sign of a competing suitor at the door; so lock in as much of the recent gain as possible by selling near to $7.

Note: I have sold all of mine using that logic -- not that I would call myself a sophisticated investor!

[mfd]

On the other hand, it may slightly reduce the chance of any offer going through and the SP falling by a dollar or so. NZO and STU being recent examples, and also 'careful what you wish for' examples for those unhappy with the MET board's handling of this offer.

[NOCASH]

On the other hand, it may slightly reduce the chance of any offer going through and the SP falling by a dollar or so. NZO and STU being recent examples, and also 'careful what you wish for' examples for those unhappy with the MET board's handling of this offer.

Good point, does that mean, I should sell now, if the deal doesn't go ahead it means the price will fall into $5.00's again?

Cheers,

[mfd]

Good point, does that mean, I should sell now, if the deal doesn't go ahead it means the price will fall into $5.00's again?

Cheers,

No idea. I'd have thought the most likely result is you get 7 dollars or more in a few months, but the chance of losing a dollar or so is non-zero.

[Beagle]

Having a bob each way, (by selling half), continues to make common sense to me and is a common sense risk management stratagy.

[limmy]

There should be another dividend payment in a couple of months. Some may prefer to collect the dividend first before selling ?