takeover price - views on this ?, page-3

imo EHL is is a business that logically s/be broken up by its geographic components and sold to local operators.

I have never understood where that elusive thing called "synergy" was to be found in running plant hire in multiple regions across the world - an Australian base for such an operation is even more baffling.

If a PE outfit were to tackle this they would probably expect to pay around $1 per share and realise $1.50+ over a disbursement period of 6-12 mths.

The world economic cycle (recovery) provides perfect timing for such a break-up with supply of new equipment constained by layoffs, plant closures during the GFC and demand for such equipment soaring.

Another scenario - acquisition by a competitor would also suggest a figure of $1+.

So around $1 is our base (asset backing around 80c and possibly rising as demand picks up).

With the possibility of the GFC being seen as a big mistake (ie purely a financial, property and political fiasco - not necessarily affecting the real world) we could be back in business sooner than most rusted on bulls thought possible. Left to its own devices, EHL could be getting close to $2 this time next year.

My point being that shareholders should not get too excited about a predator in the wings - that way we get dudded.