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Have the arbs arrived? Softly softly?
It's curious that the price is still 4p above the offer price, and has remained consistently above since the (pretty poor) offer was made 2 weeks ago. Can't still be mopping up shorts surely? So would suggest the market still expects a counter offer? Or is there another explanation?
Anyone got any thoughts?
Hi Mac, This happened with Horizon Discovery and eventually found out through RNS that it was shorts expected to have to close, by the same company that made the offer. the SP had been depressed for 9 months by the shorts so the offer was kept low. I held and got 185p, (thinking there was another offer coming) when I could have sold at 220p.
This is not advice, just explaining possible underhand action that screws the small investor.
Not invested here, was looking at the yeald of 13.51%
ATB Alex
Thanks for your thoughts Alex, which make sense.
As a long term holder here (through SKP), the offer is pretty poor and as Dave has rightly pointed out, seriously undervalues the business, as the divi was a done deal anyway. The Board had indicated regular dividends would be paid too, and painted a glowing picture of future strong growth, which had been building for some time - I have no doubt that the £1.36 would have been the base price pretty soon. If Bidco were shorting to suppress the price, highly plausible, then we have been taken even more for a ride......
I've held for similar experience, but different outcome. The last take over I had was Codemaster. First offer was okay-ish, I held for three days while the SP sat at the offer price. Deciding there wasn't going to be any change, except possibly down, I sold. The very next day, another offer comes in and it shots up. (Just my usual luck!) I'm holding Vec as the SP now is around the offer anyway, so nothing lost if there isn't another offer. (Unless it's possible to submit a lower offer).