Telco UWL has surged over recent weeks following a $3.6bn takeover bid from Morrison & Co. They fired the first shot, Macquarie came over the top then Morrison it seems have made the winning play – clearly an asset in demand. The final bid equates to $5 a share and we feel the company will ultimately be taken over by this bid, or one slightly higher, but the risk reward isn’t overly exciting after the recent gains. The issue for Macquarie is their involvement with the previously listed Vocus who compete with UWL.
MM is neutral UWL around $4.70
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