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GPT down another 1.5% as I type. DXS up 0.5%. The market is clearly backing the more believable bid.GPT's strategy is to acquire CPA via a takeover and sell down 5 assets to GWOF. To execute this strategy they need to get to 90% for compulsory acquisition of CPA to force such sales through. DXS holds 15% so this isn't possible. GPT were asked on the conference call what they would do if they didn't get to full control, the CEO's reply was "rational heads will prevail". He used the same words when describing his tilt at Lend Lease's industrial fund.They are desperate to prevent DXS getting control of these assets but have no real means to dislodge them. If DXS match GPT's approach and pay CBA (the current manager) nothing and instead use those funds to pay CPA holders, they can match GPT's bid plus more given the way the relative share prices have moved since GPT's announcement. Well played GPT...not.
GPT down another 1.5% as I type. DXS up 0.5%. The market is clearly backing the more believable bid.
GPT's strategy is to acquire CPA via a takeover and sell down 5 assets to GWOF. To execute this strategy they need to get to 90% for compulsory acquisition of CPA to force such sales through. DXS holds 15% so this isn't possible. GPT were asked on the conference call what they would do if they didn't get to full control, the CEO's reply was "rational heads will prevail". He used the same words when describing his tilt at Lend Lease's industrial fund.
They are desperate to prevent DXS getting control of these assets but have no real means to dislodge them. If DXS match GPT's approach and pay CBA (the current manager) nothing and instead use those funds to pay CPA holders, they can match GPT's bid plus more given the way the relative share prices have moved since GPT's announcement. Well played GPT...not.
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