Tuesday, July 13, 2010

Aabar Takeover - The Wall St WTF "Take"

Ken has a good post on Aabar's take-over offer over at his blog.  Worth a read.

2 comments:

Laocowboy2 said...

Small fish who swim with big ones (or even sharks) tend to get eaten. Reminds me of what has happened all too often to minorities in companies controlled by Li Kai-shing.

That said, I wonder about the reasons for the discount to book - perhaps the book value may itself be "optimistic" - many are these dayes in the GCC.

Abu 'Arqala said...

Laocowboy2

We used to have a saying about investing in Chinese companies as a minority partner. "Just fill up your wallet and leave it here on the table."

An interesting conundrum. Since the major shareholder is making the offer does this reflect its view of the accuracy of the company's financials? A prediction of imminent changes in the FX rate. Market pricing power.