Looks like they've overpaid by a lot!MDM engineering book value...

Looks like they've overpaid by a lot!

MDM engineering book value = ~US$20m
Average NPAT = ~US$5m pa
implied p/e = ~20

Paying US$100m plus is way over the odds.
I'd think US$40-50m would be about fair (in this market even a low ball bid of $30m may pass). Anyone know if the KMP pressing for the deal hold stock in MDM Engineering? they certainly don't hold any stock in Sedgman, so wondering if they've been buying MDM stock on the side with their overblown salaries. Definitely looks suspicious, MDM shares were trading at 90p at the start of the year, then suddenly jumped to a 140-150p trading range about 5 months ago and has held since (while every other engineering firm traded down). A bid at 90p would equate to US$50m. Obviously they've got nothing better to do, so using their "work" time dreaming up how to waste away shareholder funds.