Typically a take over of a company that is profitable but with no great growth prospects is around 25%. On the other hand a major growth stock stock like A2M would command a premium of at least 60%.
You can safety say that even if one was to eventuate now with that premium ($22.4) it would get the same response that was given when a takeover was attempted years ago. At the time the much respected Geoff Babbage said thanks for the offer but what you are putting on the table is not compelling. It was a polite FU and in retrospect the company making the offer could of quadrupled their offer at the time and still of had a multibagger by now.
Successful takeover offers are usually accepted when you have a CEO and BOD who are clueless into how to grow the company or when they see changes are coming that are going to affect your company that are beyond your control a la Westfield. They were smart enough to see the writing on the wall for retail and got out on a high. You have to be smart enough to let go of business even if it is bringing in a truckload of cash if down the line you know that income stream and your SP is going to be smashed by movement and changes in the market place that are beyond your control. I was never a CEO but was miffed when Telstra refused to contemplate spinning off their Sensis Yellow Pages for Billions and gave it away for tens of millions a few short years later.
Our BOD have a proven track record in growing the company, our new CEO did not leave a cushy high paying job to accept a quick buck accepting a takeover offer and dissapear into the night. For her is its likely going to be her chance to leave a legacy of taking charge of a company that was on the cusp of greatness and leave it as a behemoth who conquered the IF and milk world. For her its not about the money, its leaving a legacy for her and the company to be remembered by and she is no Lara B who would of accepted such a offer if it come her way in a heartbeat.
@Brodieman123 forget about takeovers or trying to make extra by trading this particular stock. Ignore the swings and gyrations in the shareprice as this company is on a roll that the smaller players in the IF envy and is giving heartburn to the major players in the industry that regardless of their efforts continue to lose market share to us. Enjoy the ride as we are just getting started in my opinion.
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