consolidation an option for sip?, page-5

Hey guys, my take on the current situation is as follows.

The heavy selling prior to going ex div would be from any overseas instos who are not entitled to franking credits (this happens all the time when a large special franked div takes place) so it makes more sense for them to sell out and possibly buy back in later at a much lower price.

That consolidation will take place in the industry but it will be by the private equity guys. They would be more interested in an undervalued and clean business that Sigma is now. They would also be interested in merging SIP with API. In a few years they would re float the combined entity for a big profit.

These businesses will not disappear because as I have mentioned before they are essential to the efficient distribution of pharmaceuticals to an increasingly ageing population. IMO. This is the absolute bottom for the industry as Orbis has pointed out.