XIP (ASX) News: XIP IPH Ltd Requests Xenith Board Defer Date Of Scheme Meeting To Vote On QANTM Merger

Originally posted by WanJ: ↑

"There will be enough of the existing vendor principles who would have wanted the merger to proceed with QIP"

based on what evidence ?

It is the CEO of XIP and its board's that wanted the merger. AFAIK it wasn't a suggestion propounded by a group of senior XIP employees if my reading of past ASX announcements is right.

Some XIP shareholders could hold out as you imply similar to any takeover. But money talks, and everyone's got a price. I think they'd take it at some price point because they know if they don't, its going to be tough being on its own and remain the smallest of all the listed IP groups.

It'd be an especially tough situation if the institutions in XIP sell to IPH earlier on, leaving the remaining major shareholders as the employees. In effect it is probably a worse situation than a complete takeover because IPH simply becomes the major shareholder anyway and can appoint its own board and direct XIP any way it chooses, while slowly soaking up shares below its offer price!

Rebranding really doesn't seem like a major showstopper in the entire scheme of things, nor IPH's ambitions to be a dominant global player in the IP services sector (its almost there anyway).

Expand

I'll guess we will see over the next couple of weeks. ACCC announcement due tomorrow which could shatter the ambitions for all the players! (Highly unlikely).

You're right, everyone has a price, just that some will be higher than others. Whether IPH get enough support, say anything above 60%, to proceed with their Rupert Murdoch like ambitions, we will know at the time of the first vote. Don't forget, IPH can't compulsory acquire until they hit 90%, even though they can start passing resolutions from 50%

If they get enough to make it uncomfortable for the hold-outs then we may seem some vendor principals accept the money and walk, setting up elsewhere. "Shelston, Hack, Watermark and Glasshouse" has a nice ring too it!

The interesting thing that would come about though, if they (IPH) don't garner much support at the first vote. They know they have their own 20%, but surely he (Blattman) would want to see quite a few more shares vote against the merge. If I was him, anything less that 40% against would make things difficult for them going forward.