To make it easy to follow, have reproduced a short timeline of recent events below. There have been three/four key events for the stock in the last few weeks driving price action:
1. Macquarie analyst conference presentation: Snippet on churn stabilising likely catalysed upward move - presentation available via ISD investor pres page
2. Initial AFR piece on market research firm gathering data: Supposedly for buyside firms considering a takeover
The latest underperforming company in the crosshairs of would-be suitors is media intelligence and content marketer, iSentia.
Street Talk understands at least two market research firms are contacting iSentia clients and other industry participants to garner information on the company's target markets.
Sources said one of those research firms was London-headquartered Third Bridge, which provides private equity firms, hedge funds and consultants with information to understand the value of investment opportunities.
For iSentia's chief executive John Croll, who has led the company since 1999 through private and public ownership and owns a circa 3 per cent stake, there are some tough decisions required to lift the company's fortunes.
While this column is not suggesting potential bidders have made contact with iSentia's board, several firms are kicking the tyres.
US media analytics group Cision and WPP's Kantar Media are two names that may be crunching the numbers. Interestingly, Cision's top brass and Croll were no shows at the latest International Association for the Measurement and Evaluation of Communications (AMEC) conference in Bangkok.
As a fall back, another option for Croll could be to take iSentia away from the glare of the ASX.
iSentia has endured a torrid 12-months after the 2015 acquisition of content marketing company King Content failed to live up to expectations. iSentia's interim accounts showed its content marketing unit saw an 11 per cent drop in revenue with management also downgrading its expectations for the division.
The disclosures pointed to a full-year loss in the content marketing arm's EBITA line, and flagged a number of initiatives to improve performance. That included appointing former Bauer Media boss Matthew Stanton to lead content marketing.
iSentia has a $359 million market capitalisation. The stock closed at $1.795 on Friday, still well down from its $2.04 listing price in 2014, and less than half its most recent peak of $4.93 about 18-months ago.
Last week, the company appointed former Veda Group executive James Orlando as chief financial officer. He replaces Nimesh Shah who resigned in March.
3. Follow up AFR piece on appointment of defense advisors: Critical development, allowing board and management to assess proposals
Down but not out media monitoring company iSentia has its tanks lined up in case an opportunistic tyrekicker comes knocking with an offer. Street Talk can reveal the company has Credit Suisse and Macquarie Capital bankers in its corner, ready to help however possible. When asked by Street Talk on Thursday, iSentia boss John Croll said: "Both banks have a long and continued relationship with iSentia and they are retained advisers on a range of issues."
Macquarie oversaw iSentia's ASX listing in 2014 alongside UBS. UBS's lead banker on that deal, Michael Stock, now runs investment banking at Credit Suisse.
As this column first reported, at least two market research firms have been contacting iSentia clients and other industry participants to garner information on the company's target markets.
Sources said one of those research firms was London-headquartered Third Bridge, which provides private equity firms, hedge funds and consultants with information to understand the value of investment opportunities.
A logical acquirer is US media analytics group Cision. Interestingly, Cision's top brass and Croll were no shows at the latest International Association for the Measurement and Evaluation of Communications (AMEC) conference in Bangkok.
4. Recent AFR piece on offer materialising: Denied by company, however if offer is conditional / indicative they are not required to disclose to market hence there could be a genuine offer on the table
Media intelligence and content marketer iSentia has been approached by a would-be suitor, sources told Street Talk on Monday.
Street Tak understands the approach was made in recent weeks, as iSentia's shares languish at close to record lows.
"We are not in talks with another party and we have no plans to release a statement to the Australian Securities Exchange," a spokesman for iSentia told Street Talk.
When asked if iSentia had received an approach, the spokesman declined to comment.
A company does not have to disclose indicative and conditional bids while they remain confidential.
iSentia shares have lost a third of their value this year to close on Monday at $1.89. As Street Talk revealed, iSentia has Credit Suisse and Macquarie Capital bankers in its corner, ready to help however possible.
Macquarie oversaw iSentia's ASX listing in 2014 alongside UBS. UBS's lead banker on that deal, Michael Stock, now runs investment banking at Credit Suisse. As this column also first reported, at least two market research firms have been contacting iSentia clients and other industry participants to garner information on the company's target markets.
Sources said one of those research firms was London-headquartered Third Bridge, which provides private equity firms, hedge funds and consultants with information to understand the value of investment opportunities.
The interest in iSentia comes as cashed up private equity and strategic buyers get serious about taking ASX-listed companies private.
Read more: http://www.copyright link/street-ta...gwtq63?_sm_au_=iVVP1qkkTZKKjHGN#ixzz4kVRb1O7s
Cheers,
Edge
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Good luck to all holders
ISD Price at posting:
$1.98 Sentiment: Buy Disclosure: Held
