F&N holders will need convincing on OUE bid: IG

F&N’s shareholders will take a lot of convincing that OUE’s $9.08/share bid isn’t selling them short, says Justin Harper, market strategist at IG Markets Singapore, in a note; “while this betters the $8.88 deal from the Thais it is hardly a compelling offer.”

He notes the total $13.1 billion price tag is still on the low side of the $12 billion-$16 billion valuation from F&N. “With the latest offer coming in at just 20 cents a share higher than the Thais, it leaves the battle nicely poised for Thai tycoon Charoen to come back with an improved offer that beats OUE and puts the game out of reach once and for all. The phone line to his financial backers could be busy for most of the day.”

F&N is up 2.2% at $9.33; OUE is up 4.3% at $2.65.