business spectator - is it true?, page-2

Will be intersting to see. We know that the press have got it wrong already a number of times on AIO. (Suprise, Suprise). It may well be useful in getting an update from AIO as a result.

If you take the angle away from the article and if (once again always an if with the press) the facts are correct what you have is;

1) TPG and Carlie have walked away from the RIO bid process

2) There are only 2 bidders left bidding for the whole company left and they are TPG and Carlie

3) There are still a number of strong bidders for parts of the business


I don't see this as anything but resonable and positive.

1) The 2 bidders for the company have not gone ahead with a $4 Billion purchase elsewhere they were looking at. This leaves them in a stronger financial position to go for AIO. Had they gone ahead you would say they would have less available for AIO.

2) The sale process is drawing to an end so the fact that they are down to 2 bidders for a full T/O is exactly what you would except at this late stage in the process. It costs these companies big money to go through each stage of the process and so it makes sense that if it is clear they aren't in contention they get knocked out at this stage.

3)Still having a number of strong bids for parts of the business and that these parts may be worth more than selling the business in total provides pressure on those trying for a full T/O. You don't always get this pressure in a T/O process so this is good. If the company does go with selling individual parts to different buyers they may get more than we have been expecting for a full T/O.

Thanks my view in having a look at this information.

Hope that helps.