Friday, November 23, 2012

F&N down 0.4%; Possible sweeter bid eyed: IG

F&N is down 0.3% at $9.39 in sluggish trade, with traders likely playing wait-and-see after TCC Assets, controlled by Thai billionaire Charoen Sirivadhanabhakdi, extended the deadline for its $8.88/share takeover offer until Dec 11. The Thai offer has been trumped by an OUE-led consortium’s $9.08/share bid.

“We await news on an improved offer from the whisky king,” says Jason Hughes, head of premium client management at IG Markets Singapore, in a note. He notes F&N’s share price, which has recently touched levels near $9.50 “seems to be fair value and a price shareholders may be willing to accept rather than the current $9.08 offer from OUE. Charoen has a reputation as a dogged fighter and is unlikely to let both APB and F&N slip the net.”

But he adds “Charoen has fingers in many pies with business interests across Southeast Asia. Some observers feel he may make better use of his capital and time investing elsewhere, especially if the F&N price keeps rising. He is also believed to be considering investing in Myanmar.” The stock is likely to remain rangebound as traders await fresh developments.

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