Good deal for MYS, picking up a mismanaged ROK. This offer may reflect the current price but long term is absolute rubbish, if accepted the board should all go also, they are completely inept. With ex Suncorp on it the tip some time ago was that Suncorp would make an offer, guess the belief was it could go even lower.
ROK was +$6 prior to the GFC, $2,20 or so until the offer, it has not recovered in line with it's peers. At least Lightfoot had a plan, may have taken time as the cost of their borrowings is substantial, but at least it was a recovery plan. Seems Lonie's plan is to sell before the price drops any lower, and attempt to cover his and the boards failings.
MYS will get value by closing branches and staff cuts, and reducing dividends to holders, forget all the so called synergies, this is what will happen, not exactly rocket science. Good luck also with a HO in Tasmania, again forget about the global village rubbish and how distance is no longer relevant. This offer is very poor and I will be amazed if Suncorp, or my best pick, Wide Bay do not enter the action. This in my opinion is Wide Bays opportunity to gain a strangle hold on this sector of the Queensland market. Where are you Mr. Hancock?
ROK Price at posting:
$2.71 Sentiment: Hold Disclosure: Held
