Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Given KKR's offer to acquire RHC , what is the best approach from a risk/reward viewpoint ? Take profits now by selling your total holding, see half/ retain half , or wait until the final outcome. The Board seems keen but there are obviously a number of things that need to be ticked off. General advice only. Thanks for your ongoing commentary . Cheers David
Hi David,
The $20bn bid from US private equity giant KKR values the shares at $88, only 7% below where the stocks trading today. The relatively small discount tells us that investors believe like ourselves that this is likely to be one takeover which proves successful.
Hence if MM was long we would be inclined to take part profit and run the balance but if the ASX did endure a sharp correction we would lean towards taking additional profits to pick up any bargains that might present themselves.
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