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TOPIC: Takeover hopeful will need deep pockets

Takeover hopeful will need deep pockets 9 years 7 months ago #141520

  • khhmhndtz
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Yesterday Skilled flung the doors open, saying its Perth-based suitor had indicated it was prepared to enhance the terms upon which the companies may be combined . Consequently, the Skilled and Programmed boards have agreed that there is merit in pursuing further discussions, Skilled said in a statement.When Mr McKay rejected Programmed s initial bid in January he left the door ajar if a more generous bid were presented. There is no certainty that these discussions will result in a transaction and Skilled shareholders need take no action, Skilled directors said in a statement.The company said it would make a further announcement when discussions had concluded.In December, Programmed led by managing director Chris Sutherland had proposed to buy Skilled in a cash-and-share deal worth about $1.50 a share.Bell Direct equities analyst Julia Lee said Programmed would likely have to put forward a higher takeover offer to be successful. Expectations are that a takeover offer would have to be around that $1.60 mark to be successful and that s why we re seeing Skilled shares soaring today, she told Sky Business.At that price, Skilled would have a market value of almost $380 million, compared with Programmed s value now of $298 million.Founded in 1964, Skilled is the biggest workforce provider in Australia. The group says it employs more than 50,000 workers a year . Mr McKay took the reins of the company in January.Skilled said yesterday that a strategic review of its business was well advanced . The outcome of the review will ensure that Skilled is well positioned to continue to grow and compete in a dynamic and changing labour environment, either as a stand-alone business or as part of any merged group, the company said. Planning for the implementation of the strategy is underway. Shares in Programmed fell 4.2 per cent yesterday to $2.51.
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