Discussion
Of course, as most of us will already know, in this case any bidder first needs the agreement of the existing main shareholders. Without that, a bid is not going to work, because fewer than half of the total shares are at present freely traded.
Another aspect is the agreement with Daimler for engines and electronics. It is thought that there must be a change of ownership clause, which could bring that contract to an end.
Strict Stock Exchange rules are involved too. I presume (Rob will know the answer to this) that an agreement for a majority owner to sell is allowed, before a formal bid has to be announced to the Stock Exchange.
Would have thought that a change of ownership clause for Daimler should only really kick in for a trade buyer as otherwise the private equity owners (who are not normally in it for the long term) would be held to ransom.
A boosted price and a partial sale would produce returns now and also spread the risk and increase resources for a possible future cash call.
A boosted price and a partial sale would produce returns now and also spread the risk and increase resources for a possible future cash call.
Jon39 said:
Of course, as most of us will already know, in this case any bidder first needs the agreement of the existing main shareholders. Without that, a bid is not going to work, because fewer than half of the total shares are at present freely traded.
Another aspect is the agreement with Daimler for engines and electronics. It is thought that there must be a change of ownership clause, which could bring that contract to an end.
Strict Stock Exchange rules are involved too. I presume (Rob will know the answer to this) that an agreement for a majority owner to sell is allowed, before a formal bid has to be announced to the Stock Exchange.
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