takeover offer at $1.30

Nice to see someone finally taking an interest in Wattyl. $1.30 is way too low for me to sell but hopefully we'll get another interested party or a much improved bid.
As I've said before the real money is to be made from a turnaround of the business not some quick gain from a takeover. Seems to be plenty of good feedback on the new MD - I ventured into my local Wattyl store last week for a bit of a chat (and to buy some paint).

A few odd thoughts:
- the company has a big property portfolio, some of which they have sold to reduce debt
- fairly strong cashflows hide behind the poor profit figures due to high depreciation and amortisation. Profit is highly leveraged to a recovery in sales.
- the company was subject to takeover offers a few years ago (above 3 dollars) but the takeover was knocked back by the ACCC due to competition concerns.
- the company has 4(?) production facilities and there has long been talk of trying to close the "aging" Bankstown factory down to save costs - but closing the factory itself would be a costly exercise.
- the company has been on a major cost cutting drive for several years.

I haven't had a look at Valspar (who is reported to be making the offer) but what might be in it for these guys:
- buying an existing manufacturing, distribution,sales network in Australia/NZ
- they can make further cost savings, expand product range leveraging off the existing Valspar products/technology etc.

The morning papers are reporting that Valspar are a big supplier to Lowes in the US. Woolworths has teamed up with Lowes for their hardware venture here.

Are there any other buyers for this company. Last year there was a bit of talk about Frank de Fazio as a potential buyer (this is when the stock was 40 cents). He teamed up with Alco to make a bid a few years ago. Maybe De Fazio can find some funding or a partner to get a takeover bid off the ground. He currently owns about 5% of the stock.

Also reported in the papers, Hunter Hall are saying they have a $4 target on the stock (obviously waiting for a turnaround) and $1.30 is too cheap for them. Not much more institutional holding in this stock, apart from Invesco.

that's my morning pre-coffee thoughts on the takeover. any additions from other investors?