LNK -10.43%: the corporate administration business copped a double whammy of bad news today which sent the stock to a 2-year low. The ACCC released preliminary concerns around the takeover by Canadian group Dye & Durham which aired concerns around competition given Link’s stake in digital property settlements and conveyancing business PEXA (PXA). Dye & Durham offers a software solution used by lawyers and conveyancing firms used for property settlements which the ACCC fears could vertically integrate with PEXA’s business to squeeze out any competition. The $5.50/sh cash off for Link is now 64% above today’s close, but is unlikely to proceed in its current state. Link was also taken to court in England with papers lodged regarding a class action from their involvement in the Woodbridge Income Fund collapse. While the issues seem to be stacking up for Link, there is value in the underlying business.
MM is adding LNK to the watchlist – it’s cheap but with a few warts!
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