Got a credit card? use our Credit Card & Finance Calculators
Thanks to Anonymous,bruncher,niord,gvonge,Shelford, for Donating to support the site
GKN takeover offer from Melrose
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Sorcery:
My weekend papers (The Times, Sunday Times and FT) all seem to regard Melrose highly and think this was the best outcome but if you are not happy about Melrose, why don't you go for the all cash option. I was going to suggest selling in the market now if the s.p. had stayed at Thursday's close but it has fallen back a bit.
I have to accept and give my options to IWeb by Apr.11. I see on their website that GKN goes x-d on Apr. 5 with a dividend of 6.20 p. to be paid on 14 May. In view of the fact that the offer has been declared unconditional as to acceptances, will this dividend still go ahead and will it make any difference to eligibility if one accepts before Apr. 5 or should we hang on until that date. I wouldn't want to miss out on £320, which one would definitely do if selling in the market before that date, though the s.p. is likely to go down by that amount on Apr. 5, I presume.
My weekend papers (The Times, Sunday Times and FT) all seem to regard Melrose highly and think this was the best outcome but if you are not happy about Melrose, why don't you go for the all cash option. I was going to suggest selling in the market now if the s.p. had stayed at Thursday's close but it has fallen back a bit.
I have to accept and give my options to IWeb by Apr.11. I see on their website that GKN goes x-d on Apr. 5 with a dividend of 6.20 p. to be paid on 14 May. In view of the fact that the offer has been declared unconditional as to acceptances, will this dividend still go ahead and will it make any difference to eligibility if one accepts before Apr. 5 or should we hang on until that date. I wouldn't want to miss out on £320, which one would definitely do if selling in the market before that date, though the s.p. is likely to go down by that amount on Apr. 5, I presume.
-
- Posts: 2
- Joined: February 23rd, 2018, 8:04 pm
- Has thanked: 6 times
Re: GKN takeover offer from Melrose
I looked at the final Melrose offer and it says:
"Under the terms of our Final Offer, as a GKN shareholder you will receive:
81 pence in cash For each GKN Share you hold and 1.69 New Melrose Shares
In addition,
GKN Shareholders on the register on 6 April 2018 will be entitled to receive the final dividend of 6.2 pence per GKN share as announced by the GKN Board on 27 February 2018 (the “Announced Dividend”)."
I also checked with Iweb that this means the dividend will be received if I elect now. They confirmed that this is true. Logical really, as if not it would be an imporant reason to have rejected the Melrose offer last Thursday and may have affected the outcome of the vote.
Do others share this opinion?
"Under the terms of our Final Offer, as a GKN shareholder you will receive:
81 pence in cash For each GKN Share you hold and 1.69 New Melrose Shares
In addition,
GKN Shareholders on the register on 6 April 2018 will be entitled to receive the final dividend of 6.2 pence per GKN share as announced by the GKN Board on 27 February 2018 (the “Announced Dividend”)."
I also checked with Iweb that this means the dividend will be received if I elect now. They confirmed that this is true. Logical really, as if not it would be an imporant reason to have rejected the Melrose offer last Thursday and may have affected the outcome of the vote.
Do others share this opinion?
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Riftvalley -
Iweb's notification only mentions the dividend in the context of the basic offer so as I am minded to ask for the share alternative I checked with them whether I would still get the dividend if I accepted now and asked for extra shares and they said they will not be sending off the acceptances/options till after Apr. 11 so I will still be on the register on Apr. 6 so will get the dividend even if I notify them of my acceptance now.
Iweb's notification only mentions the dividend in the context of the basic offer so as I am minded to ask for the share alternative I checked with them whether I would still get the dividend if I accepted now and asked for extra shares and they said they will not be sending off the acceptances/options till after Apr. 11 so I will still be on the register on Apr. 6 so will get the dividend even if I notify them of my acceptance now.
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Approaching D-Day I am still sitting on the fence. Bizarrely, if my calculations are correct, on my 5175 shares the cash offer would be worth getting on for £2k more than the all share offer would be worth at Melrose's current share price. However, the market is generally down so the Melrose s.p. is likely to recover, unless the Elliott lot and others have started shorting them now. Might as well stick a pin in it or compromise with the basic offer.
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Still dishing out shares to execs. I wonder what will happen to all those remaining in treasury stock:
https://www.investegate.co.uk/gkn-plc/g ... LC%20Alert
https://www.investegate.co.uk/gkn-plc/g ... LC%20Alert
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Why do you suppose Goldman Sachs are increasing their holding in GKN at this stage when last week they were increasing their holding in Melrose?
-
- Lemon Quarter
- Posts: 1276
- Joined: November 4th, 2016, 6:38 pm
- Has thanked: 151 times
- Been thanked: 417 times
Re: GKN takeover offer from Melrose
Bouleversee wrote:Why do you suppose Goldman Sachs are increasing their holding in GKN at this stage when last week they were increasing their holding in Melrose?
Knowing Goldman Sachs they have a sell recommendation on them both while believing in the prospects for the stocks and are buying them up
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
That figures. I suppose they want more Melrose shares but if the GKN price is down they'may get them cheaper via the basic offer which presumably is all that's open to them at this stage unless they have a later acceptance date than us nominee holders. I seem to remember it would have to be declared wholly unconditional by Apr. 19.
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
So Melrose have won. Details of how the options will be satisfied "(more cash" applications will be scaled down; "more shares" applications will get the lot) and deadline date etc. are here:
https://www.investegate.co.uk/melrose-i ... es%20Alert
GKN s.p. was up more than that of Melrose when I looked a few minutes ago and it would seem a lot more GKN shareholders wanted more cash than more shares.
https://www.investegate.co.uk/melrose-i ... es%20Alert
GKN s.p. was up more than that of Melrose when I looked a few minutes ago and it would seem a lot more GKN shareholders wanted more cash than more shares.
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
https://www.investegate.co.uk/gkn-plc/g ... LC%20Alert
I wonder what happens to the treasury stock left after options have been awarded. Does it become the property of Melrose?
I wonder what happens to the treasury stock left after options have been awarded. Does it become the property of Melrose?
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
-
- Lemon Slice
- Posts: 849
- Joined: November 4th, 2016, 11:18 am
- Has thanked: 796 times
- Been thanked: 344 times
Re: GKN takeover offer from Melrose
If GKN has shares in treasury, i.e. it owns them, and the company is bought out, then whoever buys the company owns the treasury stock along with everything else.
Is there any reason why this should not be the case here?
Peter
Is there any reason why this should not be the case here?
Peter
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Peter Gray -
That would certainly be logical but things don't always happen in a logical way so thanks for confirming that that will be the case.
That would certainly be logical but things don't always happen in a logical way so thanks for confirming that that will be the case.
-
- Lemon Half
- Posts: 6144
- Joined: November 5th, 2016, 9:05 am
- Has thanked: 21 times
- Been thanked: 1429 times
Re: GKN takeover offer from Melrose
Bouleversee wrote: Details of how the options will be satisfied "(more cash" applications will be scaled down; "more shares" applications will get the lot) and deadline date etc. are here:
Assuming you got the 1.69 Melrose shares and 81p in cash, is there a source stating the apportionment factor for CGT base cost?
The Broker has applied a factor of 82.42% which seems about right, but I like to check these against external sources.
-
- Lemon Quarter
- Posts: 4670
- Joined: November 8th, 2016, 5:01 pm
- Has thanked: 1197 times
- Been thanked: 905 times
Re: GKN takeover offer from Melrose
Mine are in an ISA so, thank goodness, I didn't need to exercise my brain over that one. I am more concerned about why the s.p. has dropped since then.
-
- Lemon Half
- Posts: 6139
- Joined: November 4th, 2016, 1:12 pm
- Has thanked: 1589 times
- Been thanked: 1801 times
Re: GKN takeover offer from Melrose
Alaric wrote:Assuming you got the 1.69 Melrose shares and 81p in cash, is there a source stating the apportionment factor for CGT base cost?
The Broker has applied a factor of 82.42% which seems about right, but I like to check these against external sources.
If you are in luck, it might be linked to here https://www.melroseplc.net/investors/sh ... -meetings/ in due course.
That page has an earlier Base Cost Apportionment file, from 2016, as does this one https://www.melroseplc.net/investors/sh ... lder-faqs/. I don't think it is in the Acquisition of GKN plc section of Melrose's website https://www.melroseplc.net/investors/gk ... f-gkn-plc/.
Alternatively, why not ask Melrose https://www.melroseplc.net/contact/ where the detail might be, the brokers won't have guessed (hopefully), or wait for the relevant Annual Report, where the details may well be included based on what other quoted companies include?
Return to “Stocks and Share Dealing Discussions”
Who is online
Users browsing this forum: No registered users and 10 guests