that was 6 years ago....business conditions were different at that time. 6 years ago...Auckland houses were just around 400k....
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It gives them a blocking stake though. But agree, Bluescope has the spare change (they have been doing very well of late) to buy all of STU. I am surprised by this morning's trading and price action. I would have thought that backing up the truck would be the way to go. Either STU get taken over at $1.75 plus or Bluescope come and influence the board, got to be good for STU longer term. I guess its the blocking stake that has potential buyers worried? Or am I over thinking things?
falling knife .
Surely the only way Bluescope could go forward would be through a hostile takeover.They could hardly approach STU with $1.75cps as they have already rejected that price.If the 5c dividend is still on the cards,then Milford have not done very well out of this if there is no escalation clause.
So to me it looks like a blocking position,if FBU still want to do something they would now have to go to Bluescope,so win win for Bluescope.
I guess a typical situation where short term hype is uncorrelated to fundamentals.
FBU (though admittedly not the best example for a successful company) thinks the share is worth $1.95;
Blue Scope (actually a quite succesfull steel producer) thinks the share is worth more than $1.75 (and puts their money where their mouth is);
Market believes it must be worth nothing, given that Milford sold out at $1.75;
Go figure ... might be a good time to accumulate ;);
In your opinion mate if one were looking for a ticket to ride this "dance of the mutts" what would be an attractive entry point ? $1.40, the same price as before this whole fiasco started unfolding ? (keep quiet in the cheap seats snow leopard, I'm not asking you).