according to AFR Street Talk extract.. Aitken Murray Capital...

according to AFR Street Talk

extract..

Aitken Murray Capital Partners, led by Angus Aitken and John Murray, have been advising clients over the past month to buy Bradken at levels below the bid price and not to accept Hitachi's offer. Bradken closed Wednesday's session at $3.21 below the bid price of $3.25.

Aitken Murray argue that the offer assumes no return to growth capital expenditure in the mining sector. They highlight that Bradken's biggest four markets are all stronger following rallies in key commodity prices.

They tell clients they believe the company can achieve $150 million in earnings before, interest, tax, depreciation and amortisation mid-cycle and north of $200 million EBITDA in a peak cycle.

Aitken and Murray argue that the target's board accepted the deal "far too quickly" given the multiple failed takeovers in the years leading up to the 2016 Hitachi tilt.

They think Bradken is a $6 to $8 stock.


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