MET - Metlifecare - one for the fundies?

[peat]

A party entitled to waive, or to join in the waiver of, a Condition may do so in its absolute discretion

[peat]

A party entitled to waive, or to join in the waiver of, a Condition may do so in its absolute discretion

on that basis I have shorted this company as well.

[Beagle]

Put a stop in at $7.01, very unlikely to be hit lol

[dabsman]

Put a stop in at $7.01, very unlikely to be hit lol

I'm out. Bank a very nice profit on this. I don't see anything favourable happening for this from now on. Either it will complete at $7 or they will pull out and the price will collapse I'm thinking. Will cover the bleeding on all my other holdings today haha

[peat]

on that basis I have shorted this company as well.

I was probably a bit rash, according to the Scheme Implementation Agreement


Material Adverse Change means any matter, event, condition or change in circumstances or thing which occurs or is announced, and which is not an Excluded Event, (each a Specified Event) and which individually, or when aggregated with all other Specified Events, reduces or is reasonably likely to reduce:
(a) the consolidated net tangible assets of the Target Group taken as a whole by at least NZ$100 million; or
(b) the consolidated underlying net profit (including non-recurring items and calculated using the same accounting policies and methodologies of the Target Group in place as at the date of this agreement) of the Target Group in any financial year (in the FY20F year, being as set out on page 49 of the management presentation dated 4 December 2019) by 10% or more against what it would reasonable have been expected to be but for the Specified Event(s);
provided that such event, condition, matter, or change in circumstance is not the result of:
(c) a matter, event, condition or change in circumstance, to the extent that it was fairly disclosed to Bidder in the Due Diligence Materials or by Target through the NZX market announcements platform two Business Days before the date of this Agreement;
(d) done or not done at the written request or with the written approval of Bidder;
(e) resulting from the actual or anticipated change of control of Target contemplated by the Transaction;
(f) resulting from changes in general economic conditions, the publicly traded securities market in general or law; and
(g) resulting from changes in generally accepted accounting policies or the judicial interpretation of them,
provided however, that with respect to clause (f), such matter does not have a materially disproportionate effect on the Target Group;



So, the Bidder is possibly unable to withdraw based on Coronavirus because there is no Coronavirus in NZ AND because they cannot withdraw based on general economic conditions

[Beagle]

Give it time...

[freddagg]

I see UBS (11.7%), Morgan chase (5.01%) and Credit Suisse (5.03) are building substantial holdings in MET.
Why would that be? a possible 1% return in a couple of months cannot be enough reason.

[Beagle]

I see UBS (11.7%), Morgan chase (5.01%) and Credit Suisse (5.03) are building substantial holdings in MET.
Why would that be? a possible 1% return in a couple of months cannot be enough reason.

What's the bet they all talk to each other too ! Pretty effective blocking stake ! Bound to be at least 3.3% of other shareholders think the takeover offer is pathetic.

[freddagg]

What's the bet they all talk to each other too ! Pretty effective blocking stake ! Bound to be at least 3.3% of other shareholders think the takeover offer is pathetic.

So if they successfully blocked the sale what would their options be to then make a profit?

[Beagle]

So if they successfully blocked the sale what would their options be to then make a profit?

Back room deal before the vote that would probably go something like this...Hey guys, I know you had some major shareholders who were wimpish enough to give their shares away at $7 because they had held forever and a day and were distressed long time holders so anything would do...but guess what, they've sold out on market and we're the new kids on the block and $7 simply won't cut the mustard any more. You know you're getting a bargain even at $7.40 so cough up the goods and lets be done with this.