SUN and OXR possible takeover targets?
- Thread starter hissho
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hissho said:
hello hissho,
I havn't heard any rumours about a takeover for OXR for well over a week now so it mustn't have been true. You can start one if you like
Dr D
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hissho said:
Hi Hissho,
You know that SUN is in the process of merging with PMN, before the merge and even after the announcement there were rumours that SGB or WBC were intereste in SUN but SUN and PMN put a kind of pioson pill in the merger agreement to make any takeover for SUN more difficult.
Now after the ACCC gave green light to the merge it is just a matter or time for it to go ahead, I think the day is 24 March.
WBII
Julia
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Warren Buffet II said:
That's right. Both SGB and WBC have stated they have no interest in any takeover of the new combined entity.
Julia
Brown plans Suncorp bid
* Katherine Jimenez
* January 04, 2007
INSURANCE merger and acquisition specialist Roger Brown is in talks to set up a consortium of major international companies to launch a $20 billion-plus takeover bid for Suncorp.
Mr Brown, a senior consultant for investment bank PGD Strategy, last year set up British company Online Underwriters Ltd (OUL) with the aim of buying an Australian insurance business.
Promina was the first target, but it was acquired by Suncorp last year for $7.9 billion.
The British-born insurance specialist has now turned his attention to the enlarged Suncorp. He said "a number of major international banks and insurance companies are presently considering taking up shareholdings in OUL", with the aim of launching a bid for Suncorp.
He said the plan was to sell off Suncorp's banking business and carve up the remaining insurance assets.
"What Online Underwriters Ltd is going to do, during the course of this year, is bring in shareholders ... with a view to being in a position to take advantage of a situation that may prevail over the next three years," he said. He aims to have a consortium in place by August - after the Suncorp merger has been completed. "By August, I am confident we will have the players in place."
The Suncorp acquisition was given the green light last month by the Australian Competition and Consumer Commission.
A Suncorp spokeswoman said: "The bid is progressing well and we remain confident that this deal will be of benefit to the shareholders of both Promina and Suncorp."
Mr Brown said that later this month OUL would appoint PGD Strategy as an adviser.
Mr Brown "specialises in the origination of mergers and acquisitions in the insurance sector worldwide" at PGD.
According to its website, PGD focuses on transactions worth between pound stg. 1 million and pound stg. 150 million ($372 million).
According to documents lodged with the Australian Securities and Investments Commission, Mr Brown was a director of a company called Vanyule Pty Ltd that went into liquidation owing almost $16,500 in 2003.
* Katherine Jimenez
* January 04, 2007
INSURANCE merger and acquisition specialist Roger Brown is in talks to set up a consortium of major international companies to launch a $20 billion-plus takeover bid for Suncorp.
Mr Brown, a senior consultant for investment bank PGD Strategy, last year set up British company Online Underwriters Ltd (OUL) with the aim of buying an Australian insurance business.
Promina was the first target, but it was acquired by Suncorp last year for $7.9 billion.
The British-born insurance specialist has now turned his attention to the enlarged Suncorp. He said "a number of major international banks and insurance companies are presently considering taking up shareholdings in OUL", with the aim of launching a bid for Suncorp.
He said the plan was to sell off Suncorp's banking business and carve up the remaining insurance assets.
"What Online Underwriters Ltd is going to do, during the course of this year, is bring in shareholders ... with a view to being in a position to take advantage of a situation that may prevail over the next three years," he said. He aims to have a consortium in place by August - after the Suncorp merger has been completed. "By August, I am confident we will have the players in place."
The Suncorp acquisition was given the green light last month by the Australian Competition and Consumer Commission.
A Suncorp spokeswoman said: "The bid is progressing well and we remain confident that this deal will be of benefit to the shareholders of both Promina and Suncorp."
Mr Brown said that later this month OUL would appoint PGD Strategy as an adviser.
Mr Brown "specialises in the origination of mergers and acquisitions in the insurance sector worldwide" at PGD.
According to its website, PGD focuses on transactions worth between pound stg. 1 million and pound stg. 150 million ($372 million).
According to documents lodged with the Australian Securities and Investments Commission, Mr Brown was a director of a company called Vanyule Pty Ltd that went into liquidation owing almost $16,500 in 2003.
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hissho said:
Hi hissho,
I heard that before but it looks to me that they are just trying to push the SUN price up to get more benefits from PMN in my opinion. A 20+bn is not a small cake so I personally believe is not very feasible.
WBII
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agree re: OXR,
have always been rumors on it
have always been rumors on it
Dont buy on rumor buy on fundamental, and at current price SUN fundamental is sound. Alot of premium they paid for promina is already factor in the price declining in recent year.. Sad for holders of 20+ bucks a shares but ok for
14-15 shares holder
Actually mining company at PE 9-10 is ok but not cheap because it's a capital intensive business and if you dont produce a lot cost is your number #1 energy.
That is why it trades at those PE ...any disruption in production and various unforeseen events could significantly affect your earnings
I rather buy candy making shop making 10 cents at PE 12 than a mining company making on 10 cents a share on PE 9-10
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Actually mining company at PE 9-10 is ok but not cheap because it's a capital intensive business and if you dont produce a lot cost is your number #1 energy.
That is why it trades at those PE ...any disruption in production and various unforeseen events could significantly affect your earnings
I rather buy candy making shop making 10 cents at PE 12 than a mining company making on 10 cents a share on PE 9-10
That must be a forward P/E, because prima facie it's trading at about a P/E of 20 (market cap of about 6 Mil, NPAT 07 305.8)....
ROE is right - have a look at OXR's balance sheet and you will see they are capitalising a truck load of costs to develop Prom Hill...... DCF valuation process is suited better for a miner and to me, based on funnymentals, I personally think OXR's a bit pricey... Technically however, she's looking quite strong after the shakeout recently...
Cheers
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Don't reckon either of these are realistic takeover target.....what's said on OXR above is correct and the Banking, insurance, funds management sector is not exactly flush with optimism which you would need for a takeover of SUN....rarely do people pay cash for takeovers these days, that means by definition, there are not many bargain acquisitions, which SUN may be heading towards..........bring back the private equity banaza I say....
