The first signs of a shareholder revolt appeared at US forwarder UTi Worldwide yesterday over its board’s recommendation to accept the purchase offer from Danish 3PL DSV.
DSV tabled a $1.35bn offer for UTi on 9 October, offering long-suffering investors the chance to exit the company ...
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Comment on this article
Robert Jervis
October 22, 2015 at 2:38 pmDear Gav
Presumably, Sterling Capital Management differs from the rest of the investment community in thinking UTi undervalued – otherwise other investors would have been piling in? I thought many had baled?
Or maybe Sterling should have acquired a larger stake?
Brian Moran is understandably doing nothing more than his job in trying to get the price up – but that doesn’t mean he’s correct.
As is usual – the only price that matters is the one that both buyer and seller agree upon
Yours aye
Rob
Gavin van Marle
October 22, 2015 at 5:33 pmIndeed – I had a long conversation this morning with an analyst about this morning. UTi’s share prices has a wide spread over the past 12 months, and given that this is a long-term investor would likely have paid much more than $7.10 a share. It’s defending its clients’ position
Ale Pasetti
October 22, 2015 at 5:29 pmA back-of-the-evelope calculation suggests that Sterling is under water with its UTi investment. Hence, their call to reject the offer. I wouldn’t worry too much though, and DSV can surely offer a higher premium, but I doubt it’ll go any higher than $7.70 a share.
Nick Coverdale
October 22, 2015 at 10:10 pm“Golden IT platform ” – does anyone think that DSV doesn’t have a perfectly good IT system, that it would be a major consideration in the purchase. Absolutely not, the bottom line is what matters and what the purchase brings to the buyer.
DSV is one of the few freight forwarding companies I admire, it will pay what it is worth to them (DSV), not some investor’s dreamed up calculation.