Odey Asset announced today that they think the cash offer of 400p for PLUS by PTEC materially undervalues the company (http://is.gd/ASU0Za).
Furthermore, we believe that the financial and strategic value of Plus500 to an industry bidder is significantly higher than valuation as a standalone entity.
It’s an interesting move, and difficult to gauge its true intention. Is it to persuade PTEC to up their bid, or is it because they genuinely want another party to bid?
The shares are largely unmoved, at 372p, up 2p (0.54) as at writing. The shares have been trading sideways since June. It’s a pattern that seems to occur a lot. My guess as to the next move is that it will trade in a narrow channel for awhile (days to a couple of weeks), before dropping sharply again to somewhere near the lows. That might signal an opportunity to get onboard for a further rebound.
Nothing is guaranteed, of course. It’s only my UNEDUCATED guess. It’s not even a standard situation: there are unresolved ongoing issues that will govern where the shares move.