Underperforming DSV – remember the allure of its 'crowning achievement'
In the name of synergy
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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 at a price of $7.10 per share – an offer one advisory company acting on behalf of UTi shareholders yesterday described as “paltry” and called on them to reject the bid.
Sterling Capital Management yesterday filed ...
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.