following the withdrawal of WestLB's backing for the takeover, it looks like Caxton-Iseman Capital and Star Capitial Partners are working on a deal to provide Bream with the finance
but they've only got a few days and it's gonna be a tall order to agree a deal in time
Caxton and Star may try to bid for AWG by themselves if the Bream bid fails. Thing is, unlike Bream, they don't have the necessary manangement that's capable of running such a highly regulated business such as AWG. Plus there's a possible conflict of interest coz one of Star's backers is the Royal Bank of Scotland. RSB is involved with AWG in regard to arranging a $450million bond issue
it's unlikely that AWG will accept any bid that's under 600 a share
well, as yuo've prolly gathered i went short on AWG since last week. I took the view that 538 was overvalued with no firm bid on the table. Price has fallen today and as i post this, stands at 522 ish. I've just set a stop "loss" at 535 and a limit order at 504
i don't think there's a cat in hell's chance that the AWG board is gonna agree to an extension for Bream, coz it's got personal. That Robin Saunders chick who was heading Bream, really got under Hickson's skin.
i also get the impression that Star are not totally serious about bidding for AWG without Bream, because of the aforementioned lack of specialized managment for a UK utility like AWG. Star could be bluffing, saying that they intend to table a bid if the Bream bid fails, just to try and exert some leverage on the AWG board to agree to an extension for Bream. We'll see