Fraser & Neave (F & N)

[felixleong]

wah jin drama leh~

[felixleong]

US hedge fund giant places S$700m bet on F&N
04:45 AM Jan 09, 2013
SINGAPORE - A United States hedge fund has placed a bet worth almost S$700 million to profit from a takeover battle between two South-east Asian tycoons for property and drinks conglomerate Fraser and Neave (F&N).

Davidson Kempner Capital Management has bought a good chunk of F&N shares since a consortium led by Indonesian tycoon Stephen Riady's Overseas Union Enterprise (OUE) launched a S$13.1-billion counter-bid for the Singapore firm in November. That offer surpassed an earlier one made by Thai whiskey king Charoen Sirivadhanabhakdi through his TCC Assets.

Davidson Kempner's role in the F&N saga is unusual for its size and because one of the bidders, in addition to attempting to buy out the company, is trying to increase its shareholding. At least one instance has emerged in which TCC offered to buy F&N shares from existing shareholders, only to be rebuffed, fuelling hopes of higher bids.

The New York-based Davidson Kempner, which manages US$19 billion (S$23.3 billion) in funds, has raised its F&N stake since November to just under 5 per cent, valued at nearly S$700 million at yesterday's close of S$9.69 per share, two sources with direct knowledge of the matter said.

That compares with less than 1 per cent it owned before the Thai takeover interest last July, said one of the sources. They declined to be identified as they were not authorised to speak to the media. They said Davidson Kempner, which declined to comment, would reap a massive arbitrage profit if F&N fetched much more than the S$9.08 a share on the table from OUE. The Thais offered S$8.88 per share. REUTERS

[CityFarmer]

F&N extensions stretching investor patience

The Fraser and Neave saga is getting ridiculous as the offers for the Singapore-listed property and food and beverage company made by two rival parties get extended without being increased, even as logic dictates that a higher price will probably be necessary to bring the saga to a conclusion.
-- TODAYonline

http://www.todayonline.com/Business/EDC1...r-patience

[felixleong]

dunno what the thais doing with their cheapskate bid, end up becoming so draggy
maybe they should had offered $9.70 right from the beginning and scoop everything up fast fast

[CityFarmer]

dunno what the thais doing with their cheapskate bid, end up becoming so draggy
maybe they should had offered $9.70 right from the beginning and scoop everything up fast fast

IMO, the tactic is instead of full-blown bidding warfare, TCC Asset opts for dividend-and-conquer approach. TCC still will raise the bid, but only after secured major irrevocable undertaking. This will happen anytime...

[CityFarmer]

Finally both bidders are going to face the "Final day rule" (rule 22.9) in takeover code, the game can't be never ending story

http://info.sgx.com/webcoranncatth.nsf/V...E003D3BA6/$file/FNL-Timetable-for-Shareholders-Guidance-9.1.13.pdf?openelement

I am yet see the announcement of TCC Asset on approval of Securities Industry Council on its extension of "Final day rule", but i assume it is approved and extended. So the next end-date for both is 4th Feb which is OUE's final day, unless another competing bidder emerges.

Soon the saga will end...

[felixleong]

Ya hope it ends soon with something spectacular, its getting really boring.

[CityFarmer]

TCC Asset just extended its closing date to 15 Jan, one day later the OUE closing date

http://info.sgx.com/webcoranncatth.nsf/V...F00317E9D/$file/ExtensionAnnouncement100113.pdf?openelement

[CityFarmer]

OUE extended its closing date to 21 Jan, which is the last day to revise its offer, without an extension of Final Day rule. I assume tomorrow TCC Asset will also extend its closing date to this date.

Finishing line is closing-in...

http://info.sgx.com/webcoranncatth.nsf/V...30032003A/$file/OUE_Baytown-Extension_of_Closing_Date_Announcement.pdf?openelement

[VestedInterest]

Will the new property curbs affect F n N's property arm valuation? It looks to me that both TB and OUE are playing a wait and see game, each waiting to see the other's move. This means that both are willing to increase the price but without wanting to overbid. And plan B for both is to walk away should a high enough bid is made by the other party. I don't get the feeling that they want F n N that badly now. But both want some reward for the foray, even if they walked out of the deal.