RCD has gone from $6.43 to $6.93..only 8%. Likely to be more...

RCD has gone from $6.43 to $6.93..only 8%. Likely to be more upside don't you think.

Shares in Record Investments Limited (RCD) jumped 5.9% this morning after announcing it was in preliminary discussions with its largest shareholder, Allco Finance Group Limited, regarding a potential merger. The group said discussions were at a very early stage and no agreement has yet been reached.



Any merger will require the approval of Record shareholders.

The company confirmed that the discussions do not impact the existing management agreement between the parties and Record and Allco will continue to pursue business opportunities in the normal course.

Under the management agreement, Record has ongoing rights of participation in Allco structured finance transactions involving third parties.

Record managing director, Mr Mark Phillips said the proposed merger should provide significant benefits to shareholders by combining the two companies to create a fully integrated global business model.

Record has retained UBS and Allco has retained Caliburn Partnership as their financial advisers in relation to the discussions.

If the merger proposal is to proceed, Record advised that a detailed announcement would be made to the market by late November 2005.

The company also announced today that Mark Phillips, who has encouraged and supportive of the merger proposal, would be stepping down as managing director.

However, Record noted that Mr Phillips would remain managing director until at least 31 December 2005 to assist with the merger proposal

http://stocknessmonster.com/news-item?S=RCD&E=ASX&N=387081