Takeover targets – take the money and run or hang on for the ride?

Hi Carl,

We would evaluate the situation on a case by case basis but we are conscious that a large number of initial takeover approaches are ultimately failing. A couple of scenarios come to mind but our action will be determined by a number of factors:

• Take part-profit if we like the stock and believe a higher bid is a distinct possibility.
• Exit the position if we had been considering selling before the bid, especially if a higher bid feels unlikely.
• Hold our position if we like the stock and are very confident a higher bid will be forthcoming.

There are so many variables in a given bid, its therefore very hard to outline a strategy that would apply to all. Importantly, we will always be timely in how we communicate our approach to members.