IT'S been several months since Macquarie Group tabled an indicative offer of $2.50 a share for traffic camera provider Redflex.
Suggestions are building that a rival offer has now lobbed.
American Traffic Solutions competes against Redflex and is suggested to be close to a new and higher offer, trumping the Macquarie Special Situations Master Fund. But even if ATS goes ahead, Macquarie has a 12 per cent stake in Redflex, so it's in a position to block any rival bidder from getting to the 90 per cent compulsory acquisition threshold. But it could equally turn around and book a handsome profit if ATS turned up with a bid north of $3, as has been suggested. Redflex shares closed last night 5c higher at $2.45. ________________________
And our current situation? Redflex share price is an absolute shocker! The former Directors of RDF rejected a $3.50 offer, and I doubt the bids would be this high this time (only guessing- know nothing!) The current Directors can expect a revolution if they don't accept this time. There's still about 30% in this *if* a formal offer over $3 comes through and *if* the directors decide to take it to the market and let shareholders decide.
Cheers and good luck!
RDF Price at posting:
$2.28 Sentiment: None Disclosure: Held
