Morning Report Thursday 27 April 2015
Just after midnight the Australian Financial Review led with a very pleasing story “iiNet fight breaks out as M2 lobs in $1.5bn bid”. It will be interesting to see what the board recommends as it appeared they were unusually happy with the $1.4bn all-cash takeover by TPG Telecom, it felt to me almost too happy. Hopefully we see a rare example of corporate directors acting in the best interest of shareholders (us) and go after the best price possible. It is understood that M2’s bid puts a significantly higher valuation on iiNet but being script bid it depends on the M2 share price for direct comparisons.
M2 Group (MTU) $11.52, we enjoyed excellent returns from MTU in late 2014 but took profit a little early. This is an excellent company where I see no problem with a script bid whatsoever – see chart 1.
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