staying the course you've got to be joking Lex!!!
all they did was just stuff everyone around, most importantly the instos and large super funds in australia for less than 5 per cent more with some minor adjustment to the terms and conditions to suit themselves which inturn has placed the stock in limbo
refer my previous posts why this stock(COA) was always going to get takenover!
now lets look to the future and consider the answers of
Coates Hire non-executive director David Karpin as interviewed on the ABC 2/10/07
DAVID KARPIN: I suspect it is a little unusual, but it's one that's worthwhile from our point of view for our shareholders.
DAVID KARPIN: We would have a view that there are improvements, further improvements in this business, which has had a good, strong track record but at the price that's on offer, it's certainly worthy of consideration and we chose to recommend it to our shareholders. This is the fourth offer that's been put to us, and we've been somewhat criticised in the past for not accepting earlier offers, but we are pleased with the way in which we've run this process.
DAVID KARPIN: We didn't actually put the company up for sale. We said that there was no fire sale on it, but we're obligated under the Corporations Law to act in the best interests of our shareholders. So, when an offer is placed before us, we have to fully evaluate it. We did, we've rejected three in the past. This time we believed it was of sufficient value to put to our shareholders.
DAVID KARPIN: I don't think one would characterise it as having a dismal year. Every year, including last year, we increased our earnings, we increased the value of our net assets, so the business was in good shape. It's a matter of what people are prepared to pay for that business and how that rates against what we see the value of the business in our hands going forward.
DAVID KARPIN: There's no doubt that there are synergies combining National Hire with Coates, but we believe in that price that is on offer is a share of those synergies and a fair share for our shareholders.
DAVID KARPIN: My understanding is that both parties have first option on buying the other out, so when either party exits, the other has first opportunity. Time will tell.
DAVID KARPIN: They leave the opportunities for improvement that were unearthed there, available to the incoming group, should the shareholders approve of the deal, to traverse the ground that's necessary to bring those improvements home.
DAVID KARPIN: Yes, I'm sure they do as so the current directors of Coates Hire. It's a matter of the value, so as I've said, the price on offer is the highest and it's above the best closing price we've ever had, so that it's something that the shareholders should have the opportunity to vote on in our opinion.
DAVID KARPIN: We see good ground ahead. Our customers, the major customers we have, have good order books and they've been growing, so this is a good business. As you pointed out, this is no Coles, this is a Woolworths.
DAVID KARPIN: The new company will be of larger size with a larger market share and a good market. We'd wish the new owners, if the shareholders approve, good ground because we've got an obligation, and not only to the shareholders, but to ensure our staff also benefit from any change.
COA
coates hire limited
