When TXT announced the strategic review, it became clear that...

When TXT announced the strategic review, it became clear that TXT had the vision to see that Intevia over time would erode the goodwill in its traditional fastener lines. There is little money to be made in "dumb" fasteners.

TFS have indicated that Intevia will be a fastening standard over time. TXT have recognised this technology as a key future organic revenue growth driver.

OK so they decide to flog off the TFS business, a business which is not core TXT business anyway. At the same time though, they still want to retain exposure to Intevia.

To maximise the sale price for TXT shareholders expressions of interest are sought.However, it seems they are only really interested in the bid from one party and that being the TZL syndicate. As amex has aluded to, if TXT acquires a stake in the NASDAQ listed entity they would enjoy the Intevia ride as a passive investment. I dont think that the TZL syndicate will bid for the lot. Im sure TXT can sell unwanted sections to third parties.

This trimmed down TFS entity as aluded to earlier by a previous poster suddenly becomes more a technology play rather than an industrial stock. Yep you can already see those private equity funds licking their lips and knocking on the door of TZL with their chequebooks. Its like baking a cake. You throw in the TFS business into the bowl, stir it around, get rid of the lumpy old flour (dumb fasteners), stir in the turbocharged technology (Intevia) and hey presto, the market suddenly values you on a technology earnings multiple rather than industrial. Yep those private equity funds eat this stuff for breakfast every morning.

Anyway thats my take after reading the announcements over the last couple of months as well as some valuable posts by contributors today. Yes there still are risks, however Im convinced that even if say another party does buy TFS, their main driver for the purchase would be to control Intevia hence TZL still would have a rosy future.

Thanks amex for your posts. Most enjoyable reading.

King, looks like we have just turned the bend and are on the road leading to Rome.