Greg & Greg tickle the bourse's fancy September 27, 2005
Page Tools Email to a friend Printer format Lend Lease's Greg and another Greg at Mirvac share a nosebag and excite investors.
It started out as a harmless bite to eat for two execs with an interest in the same field. Now it has turned into the market's favourite takeover rumour.
The two Gregs of the property world, Messrs Paramor and Clarke, were recently spotted lunching together, heightening speculation that Clarke's Lend Lease was running the rule over Paramor's Mirvac. Not that Paramor would be complaining, given Mirvac's share price is up more than 20 per cent from its lows in May partly because of its status as a potential target.
The idea is that Lend Lease is looking to rebuild its asset base to compensate for the loss of GPT. Certainly Mirvac, with a market cap of $3.6 billion, could be easily integrated into Lend Lease, which is worth $5.4 billion, as both have development, construction and funds management operations.
However, it's unlikely that Paramor would even contemplate a buyer under $5 a share (compared to yesterday's close of $4.21) and even then it would be a fight.
Advertisement AdvertisementThere have even been rumours that Lend Lease would join forces with Babcock & Brown to do the deal. Insiders responded to that one with "You're kidding, aren't you?" It seems the GPT debacle is still fresh in the memories of all involved.
Another likely, although far less interesting, explanation for Mirvac's share price rise is that the property group is rebounding after taking a big hit after its profit warning in May. Brokers also point out that sentiment towards the residential property sector is warming.
But from all reports Mirvac is not the happiest of places at the moment. Since the merger last year of Paramor's James Fielding and Mirvac, there have been several staff departures, mostly from the Mirvac camp. Some have been retirements, with the chairman Adrian Lane pulling up stumps last week.
MGR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)