Management have just set LTI's.. They wont be doing anything to...

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Deesof26

213 Posts.

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26/10/16

16:19

Post #: 20142005
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Originally posted by travelightor ↑

@Deesof26

There are some deals that usually favour the buyer more than the seller:
- Government privatisation, where the Government keeps the price reasonable because it doesn't want to piss off the buyers (aka voters)
- Distressed sellers, where the sellers are desperate to get the money asap and can't be too fussy about the amount it gets.
- Forced sellers, where the sellers are forced by an authority to get rid of something.
- Demergers, where the unwanted child company is to be let go (usually with adequate assets and manageable debts so that it can survive as an independent entity).

As we know, CYBG is already a demerger play where free from NAB's shackles, it can now cut costs and become a much more operationally efficient bank.

The bank that CYBG is thinking of buying, Williams & Glyn (W&G), is also a child company of RBS that RBS is forced to let go. RBS has spent a lot of money in IT upgrade to facilitate the sale. The problem that RBS has is, there are not many buyers out there who are allowed to purchase W&G.

Now, with Santander withdrawing, I believe CYBG has the field to itself and RBS will have no choice but to accept CYBG's offer.

If CYBG does take over W&G, the scope for cost cuts is huge. As a shareholder of CYBG, I hope we manage to secure the purchase.

I'm happy to see the share price keep falling, because I might get another chance to top up!

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Management have just set LTI's.. They wont be doing anything to upset them. If the deal is done I would be very confident it will be highly acretive.

Taking a few things on trust but off these levels its not a big leap..

CYB Price at posting: $4.28 Sentiment: Buy Disclosure: Held
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Management have just set LTI's.. They wont be doing anything to...

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