daressaalam
14 Apr 2015
Out at 589 Out because I have watched it bob about well above my 510 buy and felt that having been staring at a big loss a few months ago down at 450, I can't risk a tumble now. I expect and hope it will go up over the 610 for those still in.All the best,Dar
luther van dog
25 Mar 2015
Re: What are the chances Interesting question. I think though that even if the deal was certain that there would be a significant discount as the payout could be up to a year away. I would tend to agree that the downside is circa 500p and at the current exchange rate the deal is worth 625p plus 1 year dividends of 17.7p giving say 643p. The question is the cost of capital but if you use 10% you end up with the current share price so I would suggest that while not a certainty the market believes that this has a very high probability of success.
Embridge
25 Mar 2015
What are the chances It looks to me that the market has priced in a 50% success rate at todays price, 580p, for this deal to go through based on comparing the possible upside (650p) and the possible downside (500p). Does anyone have a view?Embridge
idontwanttolose
01 Mar 2015
A long wait for the proposed take over This article below came out in the FT on 19th Feb states that IF the deal goes through it will be finalised in the first half of next year, A similar article in the telegraph states the same.[link] the basis that two divis will be forthcoming, I think it worth the wait . If it goes through it is worth £4k more to me than the current value of REX shares.Rexam’s board has recommended a cash and shares offer from US rival Ball Corporation, a deal that would create a powerhouse in the production of drinks cans with annual revenues of $15bn.Ball will pay 610p a share for the smaller UK-based manufacturer, comprising 407p in cash and 0.04568 shares in Ball.Since advanced talks between the world’s largest drinks can makers were revealed earlier this month, shares in Colorado-based Ball have risen to the point that the current offer is equivalent to 635p per share in Rexam.The deal values Rexam at £4.4bn and Ball will also assume about £1bn worth of Rexam’s debt.But the transaction is expected to face a thorough review from competition authorities in both the EU and the US. It is not expected to be completed until the first half of next year.A combined company would control about 61 per cent of the market for drinks cans in North America, according to analysts. In Europe, Rexam and Ball would have a combined market share of about 69 per cent, and about 74 per cent in Brazil.Ball said it could back out of the deal if antitrust regulators required it to sell assets generating more than $1.58bn in turnover. In the event of the deal not going through, a break fee of up to £302m would be payable, it said.The two companies sought to ease concerns among investors who questioned whether the deal would get past antitrust authorities.John Hayes, chief executive and chairman of Ball, said: “We’ve spent a significant amount of time evaluating the regulatory issues, and we believe there is a clear route to obtaining the approvals.”Graham Chipchase, Rexam chief executive, said: “The Rexam board would not have accepted that offer unless there was a clear route to get this approved.”“The brewers are consolidating as well. They’re becoming quite powerful . . . Our customers are big enough to look after themselves,” he added, noting that some of the drinks groups manufacture their own cans, which reduces the power of can makers.Analysts believe Ball would be required to sell assets in all regions to address competition concerns. US-based Crown, the third-largest beverage can maker with a global market share of 19 per cent, could be one of the main beneficiaries of any asset sales.A deal would make strategic sense because of complementary manufacturing footprints. Rexam, which produces about 60bn cans a year for drinks companies including PepsiCo, AB InBev and Carlsberg, is strong in emerging markets such as Russia and India, while Ball has a presence in China, Vietnam and Myanmar.Mr Chipchase said Rexam had consulted with all of its customers and there was widespread approval of the deal because of the “geographic benefits” of an “optimised footprint”.Ball said the combined company would have revenues of about $15bn and 22,500 employees. News of the deal came as Rexam reported full-year pre-tax profits of £343m, up from £339m in 2013, which it described as a good performance in a difficult year.Mr Chipchase said there would be a range of retention measures to keep people in place after the merger, but added: “It’s far too early to speculate on my future.”“It’s about ensuring the beverage can industry is sufficiently strong so it can reinvest in capex . . . and innovation.”
daressaalam
26 Feb 2015
For your Ballsworth..... I wonder at what point do those of us who wish to sell, get out.I don' have enough shares really to make a holding in a $ share, in a company I have never heard of ( and admit to not having done any research on), worthwhile.I feel that the U.S. company will just be another complexity that I wish to avoid getting involved in since it will be a fraction of my current £10k holding in REX, and just dealing in $ seems to me unweildy.So I will sell, but so far I seem to have the (wrong ?) impression that the price will be over 600 soon. I should say that my REX cost is 510 so I am well-pleased at the rescue by the recent turn of events........ but greedy for more a few dollars more.......
Heorot
25 Feb 2015
Re: Another Piece of the Family Silver S... According to the prospectus that I get today, there will be, and I quote: "Ball will provide a Mix & Match Facility which will all Rexam Ordinary shareholders to elect, subject to offsetting elections, to vary the proportions in which they receive New Ball shares and cash. Ball and Rexam will work together to seek to address costs of holding and dealing in Ball shares for certain Rexam Ordinary shareholders."I hope this means that we can get cash instead of Ball shares. According to the prospectus, the value of the combined offer is 610p made up of 407p cash and .04568 of a new Ball share per Rexam Ordinary shre held.
leadman
24 Feb 2015
Re: Another Piece of the Family Silver Sold ... Yet again an offer that includes US traded shares! This time it's 35%! In my experience the hurdles to deal in these US quoted shares far outweighs any future gains in the new enlarged organisation. Think Vodafone/Verizon! Para. 23 in prospectus says they will seek to address this problem. Not a very encouraging sign to avoid Medallion Guarantees, Nationality Declarations et al . Why not a straight cash offer. May be I am a cynic but Rexam shareholders will just hang on to Ball shares until some solicitors/accountant tries to sort the mess out when we depart! The only winner is Ball. Small shareholders should not accept the offer but what influence do they sway on a 75% acceptance threshhold.
Ever Optimistic
24 Feb 2015
Another Piece of the Family Silver Sold Off I don't understand why this is thought of as a good thing. Another successful company lost to UK ownership. In good years the lion's share of the profits will go to the USA, in bad it will be our workers made redundant. Why is it not Rexam buying out Ball's? Why didn't the Board make a stand against this as did Astra Zeneca? I stand to make a bit of money out of this deal in the short term but I am certainly not rejoicing!
Derek Hope
20 Feb 2015
Re: I am pleased that I held the REX shares What are the ramifications of accepting the offer and holding the Ball shares? Since part of the offer would be controlled by the price of Ball what might happen to the Ball price after the deal goes through. How easy would it be to sell the Ball shares?
idontwanttolose
19 Feb 2015
I am pleased that I held the REX shares I just hope that the regulatory bodies do not interfere with this deal.
daressaalam
16 Feb 2015
Re: Rexam set to back £4.3bn takeover ... Is there any update on this magnificent share ?I am sure Questor's inches will, in the next few days, end with - " Questor first recommended these back in September 14 when they were 510 and since then".....( been down to 440)..."shareholders have enjoyed an 8% rise - Q recommends a Hold etc etc.Some guy.
Jay K2
09 Feb 2015
Rexam set to back £4.3bn takeover bid Rexam set to back £4.3bn takeover bidCITY A.M.-2 hours agoREXAM'S board is keen to finalise a £4.3bn buyout offer from rival can-maker ... Rexam is already focused on cutting costs and building scale, ...
numberbiter
05 Feb 2015
Re: NEW ARTICLE: Rexam rockets after £... In recommending a 'sell' I admit I did not consider a takeover bid. My view is that the rumoured £6 per share offer significantly over values the company and anyone offering it must be mad! So if I held these shares I would get out now, but as you can see I have been wrong before.
II Editor
05 Feb 2015
NEW ARTICLE: Rexam rockets after £4.2bn US bid "Talk that LSE:REX:Rexam was vulnerable to a takeover has been rumbling on for a while. Now it turns out there was substance to the rumour as US giant NYSE:BLL:Ball Corporation appears ready to cough up £4.2 billion for the British company which ..."[link]
idontwanttolose
05 Feb 2015
Response to media speculation Substance to the rumour!!!Rexam PLC ("Rexam" or the "Company"
Response to media speculation The Board of Rexam notes the recent media speculation and confirms that it is in discussions with Ball Corporation ("Ball", which may or may not lead to a formal offer being made for Rexam. The proposal values Rexam at 610 pence per each Rexam share based on a consideration of approximately two thirds in cash and one third in new Ball shares. Discussions on other matters are continuing and there can be no certainty any formal offer will be forthcoming, or as to the terms of any offer.A further announcement will be made when appropriate.In accordance with Rule 2.6(a) of the Code, Ball is required, by not later than 5.00 p.m. on 5 March 2015, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.For the purposes of Rule 2.5 of the Code, this announcement has not been made with the consent of Ball.In accordance with Rule 2.10 of the Code, the Company announces that, as at the date of this announcement, it has 704,816,154 ordinary shares of 80 (5) / (14) pence each in issue and admitted to trading on the main market of the London Stock Exchange. The International Securities Identification Number for the ordinary shares is GB00BMHTPY25. Rexam has an American Depositary Receipts ("ADR" programme for which The Bank of New York Mellon acts as depositary and transfer agent. Each ADR share represents five Rexam ordinary shares. The ADRs trade in the over the counter market. The trading symbol for these securities is REXMY and the ISIN is US7616556046.A copy of this announcement will be available at www.rexam.com.The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
