ANZ to takeover Etrade

[georgie]

Just saw the announcement this am - offering $4.05 - I wonder what this means for Etrade service?

 

[deftfear]

It's a very weak takeover price I think...not even 10% over Friday's close price. I think they will have trouble getting 90% of etr's shares with that price.

 

[Bin57again]

ANZ has made a cash offer of $4.05 per share. Why is etrade current price action around $4.25? Who is buying stock at that price when the likelihood is they will be required to sell to ANZ at $4.05?

 

[deftfear]

Caledonia Investments has a 12% stake in Etrade and it says it won't be selling its shares at $4.05. Also IWL has taken a small strategic stake (not yet 5%) and may be looking at making its own offer for Etrade.

 

[Bin57again]

Deft
Is Caledonia's move just to hold out for a better price (revised offer) from ANZ?

PS - Sorry deft, now found this - thanks for the tip off!
http://www.investordaily.com/1432.htm

 

[deftfear]

I'd say $5 would get most people to sell, it's a good asset but the problem with getting someone else to take it over is ANZ's 34% shareholding, they seem happy to sit on their shareholding if they don't get all of Etrade, so I'm not sure of IWL's strategy