If due dilligence takes longer than expected, it usually is...

If due dilligence takes longer than expected, it usually is because a few problems popped up. To be specific no problems with TZL, but problems with TXT. Maybe they are trying to sell TFS for a price too high. and the TZL team caught up with that and told them to agree for a lower price. Its still that usual bloody confidentality agreement in M&A deals that prevents them from making any announcements.
Textron must have a problem in explaining a lower sale price of TFS to its shareholders. This might be the explanation of the delay.
We know that Textron said they would have sold TFS before the end of the first half 2006. From my experience I know that payment is one to two months after the deal has been done which means there should be some sort of announcement before the end of May.
I am a long term shareholder in TZL and basically I am not interested in short term movements in the stock.
In the past years I have bought millions of shares in the understanding that this might be the next Microsoft/Intel
I might be right, I might be wrong. In my vision the TFS take-over has nothing to do with that. If another company buys TFS I would be a happy buyer of TZL shares, because then the non disclosure agreement between TXT and TZL does not exist anymore and the market can be fully informed about the the last 6 months achievements of TZL. Which in my opinion could be huge.
My name is Klaas Pool, I am living in Amsterdam and any questions could be directed to [email protected]
Thank you