SIQ -10.6%: The bid for the leasing + salary packaging business was essentially pulled today, with the private equity consortium reducing the bid price from $10.35 to $9.25 forcing SIQ’s board to walk away. The original bid was a 38.6% premium to the pre-bid price while the revised offer represents a 17.7% premium, which is completely inadequate for a change of control transaction. As part of the update, they also re-confirmed that financial performance was inline with current consensus expectations. The market sold SIQ off fairly hard this morning, hitting $7.70 which was actually below the price it was trading at pre-bid. Sanity prevailed and the stock rallied ~5% from there to close down 99.0c, still a decent clip below the revised bid price. We own SIQ in the income portfolio, were happy sellers above $10 however now we think the board has done the right thing and walked.
MM is bullish SIQ below $8.50
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