Last week saw SOL bid $27 for PPT as they looked to split up the business to deliver quick value to shareholders – very Gorden Gekko (Wall Street) and the 1980s. The SOL bid trumped the earlier news that PPT itself was considering a very similar value-unlocking strategy to appease disgruntled shareholders. PPT has rejected the SOL bid, yet the stock remains ~$1.50 below their initial salvo, “the game is afoot”, and with SOL owning 9.9% of PPT, it’s likely to have a major say in what comes next – if they’re prepared to pay $27, they must believe it’s worth well over $30. We should also remember the PPT board rejected the $33 bid from the Regal / BPEA EQT consortium only ~12 months ago.
- We can see PPT trading above $30 before it retests $20, but the risk/reward isn’t overly compelling after last week’s move.
MM likes PPT below $25
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