from an earlier comment a few days ago on http://www.smh.com.au/business/markets-live
I like the bit about the company's register being wide open (unlike the targets in other bids at the moment such as the bid for Goodman Fielder). I also like the comment "in the right hands I think it is worth $6".
" Pacific Equity Partners’ $1.1 billion approach on SAI Global will meet with stiff competition from rival bidders, according to Moelis & Co.
In a note to clients this morning, the investment bank claims the company is clearly for sale given the board’s decision to jettison its chief executive of six months, Stephen Porges, and engage with PEP.
The private equity firm’s indicative proposal ranges from $5.10 to $5.25 per share.
However, Moelis argues the price tag could hit $6 per share.
Analyst Ben Rundle maintains PEP has offered a “very cheap price” and points out the company’s register is wide open. “I think there is a high chance of other bidders emerging and this getting competitive. In the right hands I think it is worth $6.”
Moelis stresses that private equity is the “logical buyer of SAI” due to the opportunity to extract savings of around $30 million.
Consensus 2014 earnings for SAI sit at $106 million.
