The forthcoming Federal Budget is highly likely to improve support for child care to enable a higher rate of female participation in the workforce. There is also a clear political imperative to demonstrate that the current government is supportive of women in the community. This makes listed child care providers more attractive and suggests to me that the takeover price for TNK will have to be north of $3 per share. As Bustus has pointed out there is considerable concentration of ownership which will decide the outcome of a revised bid. I hope the major holders have an optimistic view of the future for child care and are not tempted to settle too quickly.
TNK Price at posting:
$2.31 Sentiment: Buy Disclosure: Held
