With F&N’s share price trading over OUE’s $9.08/share offer price, the Singapore conglomerate’s existing shareholders aren’t convinced on accepting the offer, Phillip Securities says.
“We agree that the property assets of F&N are of good quality and could complement OUE’s existing portfolio and expansion plan, nevertheless the eventual successful bidder in such a bidding war is at risk of over paying for the target in our view.”
It downgrades OUE to Neutral from Accumulate, noting that “there are currently too many uncertainties to the outcome of such a takeover attempt.” It keeps its target at $2.83. The stock is up 0.4% at $2.63.
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