Brendan Burgess
Founder
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Reminder of the Posting Guidelines
11 We don't discuss individual shares
You won't find any messages suggesting investing in CRH or asking if AIB is a good investment. It is not the purpose of Askaboutmoney. We don't facilitate stock tipping or speculation about the future performance of individual shares.
This guideline does not restrict you from discussing
1) the mechanics of buying or selling shares in a flotation
2) Rights issues - pricing and mechanics
3) Dividend Reinvestment Plans - pricing and mechanics
So, without discussing the merits of CPL, as an investment, should I avail of their tender offer.
CPL is offering to buy back shares from its shareholders at €6.75 per share.
It will buy up to 12% of the shares back.
The price on the market today - 2nd October is €6.65 per share (It was €5.86 when they announced the offer!)
Is it as simple as -
If the share price is higher in the market on the 23rd October, then don't accept the tender.
If the share price is lower in the market on 23rd October, then accept the tender for as many shares as possible.
How should the share price be adjusted after the rights issue, all else being equal.
What happens if the tender offer fails?
The tender offer will go ahead if the offer is accepted in respect of at least 3m shares.
The directors have irrevocably committed to selling 1.3m shares.
If the market price exceeds the tender price on 23rd October, the tender will probably fail.
I don't think that this affects anything. It's not like a rights issue failing and the company finding itself short of cash.
11 We don't discuss individual shares
You won't find any messages suggesting investing in CRH or asking if AIB is a good investment. It is not the purpose of Askaboutmoney. We don't facilitate stock tipping or speculation about the future performance of individual shares.
This guideline does not restrict you from discussing
1) the mechanics of buying or selling shares in a flotation
2) Rights issues - pricing and mechanics
3) Dividend Reinvestment Plans - pricing and mechanics
So, without discussing the merits of CPL, as an investment, should I avail of their tender offer.
CPL is offering to buy back shares from its shareholders at €6.75 per share.
It will buy up to 12% of the shares back.
The price on the market today - 2nd October is €6.65 per share (It was €5.86 when they announced the offer!)
Is it as simple as -
If the share price is higher in the market on the 23rd October, then don't accept the tender.
If the share price is lower in the market on 23rd October, then accept the tender for as many shares as possible.
How should the share price be adjusted after the rights issue, all else being equal.
What happens if the tender offer fails?
The tender offer will go ahead if the offer is accepted in respect of at least 3m shares.
The directors have irrevocably committed to selling 1.3m shares.
If the market price exceeds the tender price on 23rd October, the tender will probably fail.
I don't think that this affects anything. It's not like a rights issue failing and the company finding itself short of cash.
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