360's track record of engaging with target company boards is not the best. For example, 1, the 18 month row with Asia Pacific Data Centres / Next DC. 2, Evan's Dixon 3. and now Irongate.
Though I am too far removed to know what to make of this. As there would be alot of emotion, ego, and self-interest at play during takeover battles (on both sides). So it could be that IAP should be doing more to engage (on behalf of shareholder interests). Though 360 perhaps have an approach that isn't working here. Impossible to say from the sidelines.
Reading the TOT response (12/11), there are some comparisons listed in the offer price to AREIT peers (office and industrial) as well as valuation comparisons to peer (on cap rates). It doesn't look to make sense to continue to up the bid at this point ($1.70). Unless, the endgame here for 360 is the value of the management rights. If that is the case, (and the mgmt rights are the true target), why not just call an EGM and have the manger removed, or purchase these separately from the (fully-valued) property book.
TOT Price at posting:
90.5¢ Sentiment: Hold Disclosure: Held
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