takeover - competing bids where from?

  1. 67 Posts.
    As I said in my last post I think the independent expert (Leadenhall) will place a value of $1 to $1.5 on the stock.

    The CEO said in the AFR that the bid is not hostile. This is a tightly held stock with founders holding 38% and Chevallier, the bidder, 22%.

    Since Mr Menzel died his son has stepped down from the board and I think their 38% must be in play or the bid would be unlikely to even reach 50%.

    An institution also holds about 17% and they may want to get out too.

    Alternative bids could come from an Australian company like Iplex or another pipe company.

    They do have a licencee that is a mid cap US company, Repipe, that have been expanding aggressively in the US. They, as well as Chevallier, are locked into escalating minimum royalty payments and may be a possible bidder.
 
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