RIN - Rinker Group

[Realist]

realist congrats,

you must be punching the air!

Not really, but with a close of around $20 on Monday I may be...

I never bought that many either..

 

[michael_selway]

Well you'd think it'll rocket on Monday morning if todays last minute splurge is anything to go by, be interesting to see what it does on the Dow Jones tonight!

actually it should fall on Monday.

because RIN dismissed the Wall Street Journal Article? or maybe not?

http://www.smh.com.au/news/Business...n-takeover-talk/2006/10/27/1161749307870.html

Rinker shares jump on takeover talk
October 27, 2006 - 6:29PM

Shares in building materials firm Rinker Group Ltd have jumped nearly six per cent on the back of takeover speculation.

The Wall Street Journal has reported Mexico's Cemex SA, the world's third-largest cement company, might be considering an offer for the group.

Rinker said in a statement to the Australian Stock Exchange that it is not aware of any basis for the report.

"We have become aware of an article released online this afternoon by The Wall Street Journal speculating that Cemex SA may be considering making an offer for Rinker," the company's statement said.

"We wish to advise that we are not aware of any basis for that article."

Eighty per cent of Rinker's business is in the US.

Rinker shares closed 83 cents or six per cent higher at $14.70 on Friday, on a volume of about 12.8 million.

There was also significant activity after the market closed, with brokers saying that more than 2.7 million shares changed hands, well above normal levels for the stock.

IG Markets senior trader Harley Salt said Rinker shares had been in negative territory for most of the day after a profit warning from building materials firm Boral Ltd dragged down other stocks in the building sector.

"The profit warning dragged everything down in building materials," Mr Salt said.

"...It (Rinker) was down all day and this article came out just after the close and that's why it jumped."

Rinker's net profit for the three months ended June 30 was $US206 million ($A276.05 million), a rise of 14 per cent.

thx

MS

 

[Devil_Star]

Great, that's what I have been awaiting for weeks. It's great timing for the big sharks (like Cemex) to take over competitors (like RIN) when the market condition is bad enough. Otherwise, it will take quite a while for RIN's SP to recover when the big picture still looks gray. Haha, go Rinker go!

 

[Joe Blow]

I say RIN will open at $21 on Monday!! :jump:

hehehe

Not really, but with a close of around $20 on Monday I may be...

Now I know you guys are just being a little optimistic (with the possibility of a little tongue in cheek ) but lets try and ease up on this sort of speculation, which could be construed by some as a ramp.

Of course if RIN does close at over $20 on Monday I will owe you both an apology.

 

[3 veiws of a secret]

I've just been watching the Austin Powers dvd and he reckons its 1 billion dollars !!!!!!!

Furthermore lets focus on this snippet in Michael Selways cut/paste article ...."might be considering an offer for the group."....... & "We wish to advise that we are not aware of any basis for that article."

I reckon Minimi was out with stockbrokers lunchtime, perhaps slightly too many campari's.

Ironically I was watching this share today and doing my maths when it was static at $13.37.......when watching the news I see $14.70 closed. Remarkable!

 

[Realist]

I've just been watching the Austin Powers dvd and he reckons its 1 billion dollars !!!!!!!

I hope it wasn't "The spy who shagged me", as that is on Channel 9 in 1.5 hours.

We'll know how RIN will go on Monday in about 3 hours...

 

[bvbfan]

Here's an article I came across about the offer at $13
US adrs code is RIN if anyone wants to follow

 

[YELNATS]

hi folks
An article in the Wall street journal speculating on the takeover by Cemex SA. But has been discounted by Rinker
Where there is smoke there is usually fire
Cheers Martin

Or blue cod.

 

[YELNATS]

Or blue cod.

Seriously I hold RIN too and likewise hope for a nice Monday surprise!

 

[Realist]

Yep that values Rinker at about $18.70.

WoooHoooo!!!


$13 billion international concrete deal

Deal would give Mexican firm Cemex a big presence in U.S. market and create one of the world's largest building materials companies.
October 27 2006: 8:22 AM EDT


PHILADELPHIA (Reuters) -- Mexico's Cemex SAB de CV said Friday it would offer to buy Australia's Rinker Group Ltd. for $12.8 billion, or $13 per share, in a move to create one of the world's largest building materials companies.

Cemex (Charts) said the offer represents a premium of 27 percent over Rinker's closing stock price on the Australian Stock Exchange on Friday.

 

[BSD]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a63q2TGDVdDs&refer=home

Official now

Rumour comes across Dj Wire at 4pm - best clients get called

Punters paying up on the close today are going to be happy!


A$17.50 offer arrives late night

New shorts about to get flogged - down 3.5% today pre rumour...

 

[YELNATS]

Yep that values Rinker at about $18.70.

WoooHoooo!!!


$13 billion international concrete deal

Deal would give Mexican firm Cemex a big presence in U.S. market and create one of the world's largest building materials companies.
October 27 2006: 8:22 AM EDT


PHILADELPHIA (Reuters) -- Mexico's Cemex SAB de CV said Friday it would offer to buy Australia's Rinker Group Ltd. for $12.8 billion, or $13 per share, in a move to create one of the world's largest building materials companies.

Cemex (Charts) said the offer represents a premium of 27 percent over Rinker's closing stock price on the Australian Stock Exchange on Friday.

WoooHoooo Indeed!!!

But US$13 translates at about A$17.10 at E/R of 0.76 which is less than a 27% premium over final price of $14.70. Seems to be a discrepancy.

regards YN.

 

[scsl]

DJ News is saying that the bid is hostile. Will this make things different?

Also, at first glance, I think RIN will end up being taken over at more than A$18.70 or whatever the current offer is.

(I'm not attempting to ramp here. I currently don't hold RIN but am looking to buy and wait for a possible higher offer.)

 

[Realist]

Well it is up over 30% in pre-market trading so far...

Pre-Market: 69.50 16.10 (30.15%)

 

[michael_selway]

Yep that values Rinker at about $18.70.

WoooHoooo!!!


$13 billion international concrete deal

Deal would give Mexican firm Cemex a big presence in U.S. market and create one of the world's largest building materials companies.
October 27 2006: 8:22 AM EDT


PHILADELPHIA (Reuters) -- Mexico's Cemex SAB de CV said Friday it would offer to buy Australia's Rinker Group Ltd. for $12.8 billion, or $13 per share, in a move to create one of the world's largest building materials companies.

Cemex (Charts) said the offer represents a premium of 27 percent over Rinker's closing stock price on the Australian Stock Exchange on Friday.

wow good news i guess, yeah depends on what exchange rate used

thx

MS

 

[scsl]

News just out...

The Rinker spokeswoman said the company had received a call from Cemex earlier Friday evening about the bid.
She also said Rinker hasn't altered its fiscal 2007 earnings guidance, which chief executive David Clarke told a New York industry conference late last month was for a gain of 13% to 21% in earnings per share before one-time gains and the impact of a capital return and special dividend. Clarke said Rinker expects EPS of 84 U.S. cents to 90 U.S. cents.
Cemex is offering A$17.00 a share in cash for Rinker, with the target stock ending the week at A$14.70, up 83 cents.
While Rinker shares were lower for most of the session amid investor concern about the outlook for local building material stocks with significant U.S. exposure, the shares soared in the last few minutes after the Wall Street Journal newspaper said Cemex was planning a bid for Rinker.
Rinker shares have traded as high as A$21.44 in 2006 but have dived since May due to downgrades from analysts as the U.S. economic slowdown begins to have a marked impact on the building materials market, and the housing sector in particular.
A person with knowledge of the transaction said Cemex has a "very little" shareholding in Rinker, well below the 5% level where investors must reveal their stakes in listed local companies.
Cemex hopes to eventually hold talks with Rinker executives to pursue a friendly transaction, the person said, but released its bid relatively quickly as the Australian sharemarket is beset by a merger frenzy at the moment which is putting a premium on many bluechip stocks.
"In the current very speculative environment, with so much merger mania, they didn't want to have protracted discussions with the board only to have it leaked into the market," the person said. The Australian media sector has been the subject of A$9 billion of deals in the last two weeks, while international private equity groups have begun appearing on the share register of many local companies this year and actively bid to take companies private.
A Cemex executive arrives in Sydney this weekend and will help coordinate talks with Rinker if necessary, the person added.
Cemex hasn't yet approached institutional shareholders who account for 75% of the target's share register, the person said.
The Mexican company is seeking 100% control of Rinker, with a 90% minimum acceptance condition that means the bid could be blocked by any group of investors who want a higher offer and together hold more than 10.1% of the issued capital. Australian funds manager Perpetual Trustees has a 10.48% stake in Rinker with Capital Group holding 5.99%.
While Cemex is focussed on controlling Rinker's U.S. operations, the company has no plans to offload Rinker's much smaller Australian business, the person said. Rinker's revenue, on a geographic basis, is weighted 79% to the U.S. market with Florida accounting for 44% of the total followed by Arizona with 13%.
Rinker is due to report second quarter earnings on November 9. In the first quarter ended June 30, net profit rose 14% to US$206 million with earnings per share up 17% to 22.7 U.S. cents. Operating income from Rinker Materials, its key U.S. unit, rose 17% compared with a 14% for the overall group. Sales rose 18% to US$1.46 billion.
Cemex has hired Citigroup as lead adviser assisted by JP Morgan.

 

[Realist]

They may find they need to pay more...

Cemex to Offer About $11.7B for Rinker
Friday October 27, 8:18 am ET
Mexico's Cemex to Offer About $11.7 Billion in Cash for Australia's Rinker


NEW YORK (AP) -- Mexican cement manufacturer Cemex SAB de CV said Friday it will offer about $11.7 billion in cash for Australian heavy building materials maker Rinker Group Ltd.
Cemex said the deal would create one of the world's biggest building materials companies with revenue of $23.2 billion and more than 67,000 employees in more than 50 countries.

Cemex said it planned to offer $65.00 in cash for every American depository receipt, a 22 percent premium over the stock's closing price of $53.40 on Thursday on the New York Stock Exchange.

The Mexican company would also assume about $1.1 billion in Rinker debt in the deal.

Cemex said it expects an acquisition to immediately add to earnings per share with $130 million in pretax savings by the third year following the deal.

 

[michael_selway]

They may find they need to pay more...

oh my, US $71.50!

thx

MS

 

[tour]

woa just when i though i was gonna sell yep this baby will be at least $18 bux by monday, hope we get to keep the dividends too.
lol david tweed wouldve made a bucket load if gullible investors sold.
hopefully there be a counterbid. this is a hold hold hold!

 

[Realist]

Closed at $71.10.

So it's obviously gonna be around AUD $19 to $20 on Monday!!