Toll sinking well below the price they were before the takeover bid was announced is, i think from what i've read, a result of a couple things:
$20M in estimated takeover costs up in smoke and straight off the bottom line (AFR); potential for further wasted costs being factored in; 6 months of hard work going in to the deal, with Toll in the mean time having somewhat 'taken their eye off the ball'; and investors now unsure how Toll will pursue growth.
But yeah, Little's a smart and shrewd operator, and from a longterm perspective the market may have overreacted.
Besides, a few brokers still have $15+ price targets, so not all is lost.
I just wonder how many more concessions Toll are going to make to the ACCC - hopefully not so many that a takeover of PRK would cause the business to splutter.
TOL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
