Heightened press speculation of a private equity approach for the group has focused our attention on a likely takeout valuation. Using SOTP analysis we arrive at 460p but envisage a price >500p if competitive tension builds. We see corporate action as the best solution for shareholders as it offers better near-term certainty than any outcome of the current strategic review. We would advise shareholders to sit tight.
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Is a PE end-game now in sight?
- Published:
20 May 2016 -
Author:
Sahill Shan -
Pages:
6
Heightened press speculation of a private equity approach for the group has focused our attention on a likely takeout valuation. Using SOTP analysis we arrive at 460p but envisage a price >500p if competitive tension builds. We see corporate action as the best solution for shareholders as it offers better near-term certainty than any outcome of the current strategic review. We would advise shareholders to sit tight.