I am a bit surprised at the size of the SP fall.I expected it to...

I am a bit surprised at the size of the SP fall.

I expected it to fall like this if it was the BUYER that pulled out. But this is the opposite - AZZ as the seller with more information is now saying $300million is to cheap to sell and have chosen to back out of the deal.

At the end of the day, management decided not to sell because they are saying it is worth a lot more than $300 million, and WE STILL RETAIN THE ASSET. So why should the SP drop by a third?

The only reason I can think of is that the SP fall has been driven by short term investors and distrust of management.

I think a lot of people may be unhappy with the lack of info around the deal that has now been terminated and might wonder if they're just trying to hang around to line their pockets. I don't think this is the case, because even if the transaction went through, I suspect they would not have paid it out but used a big chunk of it to buy something else.

If you are worried, just remember that we still retain the asset, and it was not the buyer that terminated the deal, but AZZ - and the sole reason being that they feel $300million is not worth it.

Who knows, maybe the spurned buyer may come back with a higher offer? If the facts change again, maybe management will change their minds yet again!