There is no doubt in my mind that CML is about to be 'in-play' and all the evidence supports a PE consortium led by the likes of KKR, who has the funding capacity and track record to pull off this type of transaction.
CML fits the void - Wounded underperforming beast, with a solid business in need of turnaround (still), with plenty of free cash flow, low net debt (gearing) and much break-up optionality.
CML is too expensive (dilutive PE basis) for a Wal-mart or Tesco to have a crack at - no synergies (but for better management)
However, I get the impression that an announced bid (ideally with unanimous Board approval) is likely to be a week or so away based on the recent comments by some of the funding bankers around the market.
Expect the SP to wade for a while, this may afford greater time to accumulate a stake for T+10 action
CML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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