Yesterday, we heard that investment house Washington Soul Patts (SOL) lobbed a $3bn bid for Perpetual (PPT) back on the 21st of November. It crossed the news wires after-market yesterday, and not surprisingly, the board has rejected the $27 scrip bid, only a few cents above its July high but a 21% premium to yesterdays close. Interestingly, PPT announced the bid right after telling the market the board was exploring demerger possibilities to try and unlock $1bn in shareholder value. SOL is the company’s largest shareholder, with a 9.9% stake, and while they might not get lucky with their bid, a demerger is still likely to line their pockets. We cannot see SOL buying PPT unless they materially increase their offer; perhaps they will turn their attention to pressuring PPT’s board to follow through with their demerger talk.
- It’s hard to forecast where the stock will re-open, but it now looks good buying sub $25.