PDL Board need to restrike the deal with PPT to keep PPT at the table, as right now the $23m break price is more appealing to PPT shareholders (and the PPT Board who represent them) than the current PDL deal. So what needs to happen. 1. PDL Board talk proactively with PPT Board about a new deal, not guns at 10 paces via the lawyers ........ 2. PDL state they are willing to talk about a lower acqusition muliple if PPT commit to selling the corporate trust business to EQT (the Regal partner who previously bid for the Corporate Trust business) and becoming a pure play funds management/wealth advice business.
PDL have so much to lose (for shareholders) but so much to gain if they play their cards right. The market clearly showed the takeover multiple was flawed (by virtue of the price moves) and the market has now shown what PDL shares will be worth without the PPT bid.
Notwithstanding all fund manager share prices are at their lows, the PDL Board need to stand back and look at MFG/PTM and others to see the days of large fee charging funds are over and they need to find a deal which brings the scale which is required. You might only get one Alan Bond in your life but maybe you only need 3/4's of the best possible price to still do the deal.
PDL Price at posting:
$4.20 Sentiment: Hold Disclosure: Held
