RIN - Rinker Group

[noirua]

Lots of enthusiastic reporting over the raised bid for Rinker group by the Mexican outfit, Cemex. I remain surprised that an American consortium could not top this bid. Worth about US$2.00 a share more and around AUS$23.50, IMHO.

Will Perpetual cave in and grab the money?

 

[Sultan of Swing]

Will Perpetual cave in and grab the money?

I don't know about them but I did this afternoon.

I figured the bit extra I MAY get, I may as well get out and be cashed up for any opportunity that may present itself.

I'm a bit disappointed though, I liked Rinker. They're a good Aussie success story with a huge longterm upside IMO, and now they're going into foreign ownership.

If Perpetual DO hold out, I might regret selling them although if that happens, they may drop in price in the short term.

Now the search begins to try and find something else with some upside.

 

[noirua]

I don't know about them but I did this afternoon.

I figured the bit extra I MAY get, I may as well get out and be cashed up for any opportunity that may present itself.

I'm a bit disappointed though, I liked Rinker. They're a good Aussie success story with a huge longterm upside IMO, and now they're going into foreign ownership.

If Perpetual DO hold out, I might regret selling them although if that happens, they may drop in price in the short term.

Now the search begins to try and find something else with some upside.

Fair enough, as markets are at present you should have very little difficulty finding something. The last three years have been very easy and hopefully it will stay that way. Good Luck

 

[shinobi346]

Yea I don't like the idea of the Mexicans getting hold of this company and having another aussie company go into foreign ownership. I won't be selling this or Coles until I have to.

I like my money but my pride goes first.

 

[noirua]

An article in "SMH" today, says that Perpetual may leave it until Rinker's Annual Results are out in May, before deciding on whether to accept Cemex's bid.

 

[ozambersand]

I also heard that anther reason Perpetual are stalling at the moment is that they want to lock in a fixed price in Oz dollars and not one affected by the exchange rate between the Aussie dollar and the US dollar.

Currently, the more the Oz dollar rises, the lower the offer becomes in Australian terms. Hence locking in a price might be good if the Australian dollar increases further.

 

[noirua]

I also heard that anther reason Perpetual are stalling at the moment is that they want to lock in a fixed price in Oz dollars and not one affected by the exchange rate between the Aussie dollar and the US dollar.

Currently, the more the Oz dollar rises, the lower the offer becomes in Australian terms. Hence locking in a price might be good if the Australian dollar increases further.

Hi, That does seem a more logical reason than my suggestion of a counterbid. Some Americans may also be asking for Aussie Dollars; Are their rights being infringed, maybe yet another hold up, maybe.

 

[noirua]

DON'T take any notice of this, it's just my ramblings and thoughts or is it hopes as well, all mixed in.

On Friday we can expect the release of the Preliminary Annual Results for Rinker Group being rushed out by the present Board after recommending the offer by Cemex.

Could there yet be a Consortium willing to pounce as the property situation stabilises in the United States. The US Dollar sank again against the Aussie and pushed down the worth of the Cemex bid, in Aussie Dollar terms. Cemex are not willing to make a share offer and thus save many investors from paying capital gains tax.

Maybe, a bid involving both shares and cash is about to be made, supported by Banks. This would have to be around US$17 ( Aus$20.50 ).

 

[noirua]

Rinker's net profits for the year ending 31st March 2007 rose by 6%: http://www.asx.com.au/asxpdf/20070427/pdf/3124chs0rnr76g.pdf

 

[noirua]

Cemex have announced that Perpetual have accepted their offer for their holding in Rinker Group.

Shareholders will now receive the Aus$0.25 final dividend and this will not be deducted from the offer which has been extended to 8th June. Cemex have also decided to accept shares offered providing they gain more than a 50% interest.

Unless something surprising happens this looks like the end game for the Aussie Rinker Group.

 

[noirua]

Cemex, in an ASX announcement this morning, have announced that they now hold a 15.76% interest in Rinker Group.

 

[shinobi346]

It's reassuring to note there seems to be a lack of interest in Cemex's offer. 15% after all this time. I won't be selling my share willingly.

 

[drmb]

It's reassuring to note there seems to be a lack of interest in Cemex's offer. 15% after all this time. I won't be selling my share willingly.

I'm not interested in signing over anything this FY. I am not going to be persuaded by the little tickle offered for the first 2000 either. The US housing market seems to be picking up judging by the tape measure and wall paper paste articles on suppliers of renovation needs, seems to be on the up.

 

[noirua]

Cemex have announced that their interest in Rinker Group has increased further to 21.23%. The target is 50.1%.

 

[noirua]

Please don't take this as advice, it certainly is not.
Cemex may not obtain 90% of Rinker Group and a few investors with around 0.5% to 2% have indicated they may not accept the offer.
Cemex appear to have accepted this possibility and the shares may well continue to be quoted, BUT what price will they trade at?
Always the possibility that the market quote may end at some stage, an additional problem if you want to sell.

 

[noirua]

Cemex have annouced that they now hold 24.19% of Rinker Group Stock. The target is 50.1%.

Some shareholders have asked Cemex to extend the offer for capital gains tax reasons.

 

[noirua]

Cemex gathering in of Rinker Group stock is starting to gallop towards the 50.1% mark as they indicate a rise to 27.47% this morning.

 

[shangyien]

I suppose the increase in Cemex holdings is because we are all afraid of the implications of becoming minority shareholders. I'm about to cave in for this reason alone.

 

[noirua]

I suppose the increase in Cemex holdings is because we are all afraid of the implications of becoming minority shareholders. I'm about to cave in for this reason alone.

Hi, It can be quite difficult to sell unquoted stock as you have to find a buyer yourself and most just sit there holding.

I know there are quite a lot of shareholders in Claremont Petroleum, taken over by Beach Petroleum, where there is no stock quote. I suppose its possible to sit there for ever.

There was a story about a lady who held on to her stock in a major company when everyone else sold. Even though the company held 99.9% they forgot about her. 30-odd years later when the company itself was taken over she came out a substantial winner. Stock was worth about 200 times more than the earlier bid. "Can you wait that long"

 

[Lert]

Is anyone prepared to take a guess at what the AUD/USD exchange rate will be at settlement ? The break even point (US$15.85 vs AU$19.50) is at an exchange rate of 0.813. If the exchange rate is greater than this its better to take the $19.50 (option 2), if less option 1 seems to be the way to go..