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January 18, 2006
NTL's Revised Offer For Virgin Mobile Should Do The Trick
NTL has raised its offer for Virgin Mobile and given minoirty shareholders an option to take stcok in the new NTL. Richard Branson has gone further and is willing to take a slight discount to what the minority Virgin shareholders will receive. The revised offer was enough to bring Virgin to the negotiating table as the two companies have confirmed "preliminary" discussions according to this article. It seems that the acquisition will now go ahead and the new NTL will be rebranded as Virgin. I continue to like the potential of the enlarged NTL entity after the mergers with Telewest and VIrgin. The financial upside is substantial and if the new company can show some modest top line growth a stock price in the $80s is very plausible. Furthermore, the potential bid by private equity firms provides support and the possibility of reaching a target in the $80s sooner rather than later. Even if private equity walks away, remember that their interest confirms the significant upside for the new NTL.
Posted by Steve Birenberg at January 18, 2006 09:04 AM in NTLI
what do think of micc's tremendous runup today with possibility of takeover offers?
do you think its time to sell or do you think the eventual price will be higher than $35?
do you think it is time to buy japan small cap again
or do you think a more major correction is still pending?
On MICC, I don't know the numbers well enough to determine if this is going to be the takeout price. My history in following takeovers tells me there is probalby not much downside, and maybe 10% upside, assuming a deal goes through. It seems unlikely there will be no deal once it progresses this far. Note that MICC siad it had received more than one offer. If I were long the stock I'd sit tight.
On Japan, I have not bought more JOF yet but I plan to do so. I like ot wait for a few dasy fo stabilization after a shock like that market received. I think if the US doesn't stage a decent rally today, japan could fall back a bit tonight.
Posted by: at January 19, 2006 09:23 AM