Looks like pretty good FA to me, DDzx. Now that the bid seems a...

Looks like pretty good FA to me, DDzx.

Now that the bid seems a bit gone, I was interested to see how pundits analysed the figures. I came across this:

http://www.smh.com.au/business/djs-bid-a-hoax-shares-slump-as-doubts-grow-20120702-21bsq.html

"Mr Gilbert [UBS] said the bid implied a value of 11 times FY13 earnings before interest and tax, or a 40 per cent premium to David Jones' global peers, which indicated the offer was too rich."
...

"The retailer’s shares surged the most in almost 17 years on Friday after disclosing the potential offer, which values the company 38 per cent higher than its market capitalisation the previous day."
____________

Going back to this paragraph in my first post on this thread:

* PE has said it will triple its return if it buys DJS for $2.20. $1.70 with a 30% premium is about $2.20. They have said there would be an IRR of 17% @ $2.80. Some articles have said that PE would not spend more than $3 on DJS.
____________

And looking at the price DJS was at before the "bid" ($2.26), this works in seeing where PE gets their figures- the earnings multiples on a global comparison. Around this level is the level that would include a premium, it seems- not add a premium- no wonder DJS management wanted this bid to happen.

So, we're back to $1.70-$1.80 if PE want a 3X return.

Thinking of Sol Lewy and Mark McInnes and their poaching ways, it would be astonishing if McInnes and former management of DJ's- now poached- returned to DJS. I reckon SL will go for MYR!