And there you have it .. no increased bid, no white knight, and they have the audacity to suggest that the offer is such a great premium to the 3 month average, after basically giving away Ventia and further reducing the value of CIMIC. They are only giving back a portion of the value that has been destroyed by the divestment of Thiess and Ventia - this management team couldn't lie straight in bed.
If I was an employee of CIMIC at the moment, I would take this statement with a pinch of salt. I'll bet the BICC employees were told the same thing and then as soon as the deal is done - a major restructure and lay-offs which are now the subject of legal claims against the company.
(d) Future employment of employees HOCHTIEF Australia acknowledges that CIMIC’s people are vital to maintaining its leading position in the markets in which it operates. HOCHTIEF Australia, together with the CIMIC Board, will assess the ongoing resourcing requirements of CIMIC, with a view to ensuring that the priorities identified through HOCHTIEF Australia's analysis, as noted in Section 3.2(c), can be implemented with the support of a strong level of employment. It is however possible that there may be some positions that require redeployment or which are no longer required (and if so, benefits would be paid in accordance with contractual and other legal entitlements).
Hot on the heels of this statement will be the Target's Statement which will 'strongly' recommend that shareholders accept the offer, following the advice of their 'independent review committee'. This mob are a disgrace and ASIC just sat by and watched this happen over the past couple of years. I sold out last week because I just couldn't stand holding this company's shares anymore and was never deluding myself that the situation was going to change.
CIM Price at posting:
$22.00 Sentiment: Sell Disclosure: Not Held
