Some compelling Facts for a merger come takeover:LCL Revenue...

Some compelling Facts for a merger come takeover:

LCL Revenue $170m+
Pierlite (Gerard) $160m = $330m

Together would have 35% market share with huge purchasing power and leverage into international markets. They would then become a target for the likes of Phillips/Osram/GE and trade at a premium PE somewhere north of 15 rather than abou 10 (LCL)

Gerard has taken the 16% stake because he will either takeover LCL or sell out Pierlite to LCL...either way will be win win...he is no mug look at the fortune he made with Clipsal.

He makes a deal with Hunter Hall (Insto with 16% of LCL) takes him to 32% and then makes a market offer probably about $1 gains more than 50% takes control of the board and hey presto he controls the wholesale lighting market in Aus.

Gerard has made this move after the recent change in Chairman and other board changes have made this company more competitive and is now a real threat to his own business.