Normal
At close of market the entire A-REIT sector is down 1.16%. Dexus is down 0.47% and GPT is down 1.66% in the closing auction Dexus dropped half a cent while GPT lifted by one cent. You have to remember that tomorrow is options settlement day for this month and it is not unusual for the market to be pushed down the day before. I'm not choosing sides, I'm happy to trade both dxs and gpt, but I wouldn't put too much into todays price actions as an indicator of the markets support for either bid. Subject to Dexus revising their bid, at this point in time GPT has the superior bid for the CPA shares.I have to correct my early post, the papers indicated this morning, if successful in their bid GPT will sell six (6) prime assets into GWOF. If GPT gains control of 85% of CPA then Dexus will have two choices, either sell into the bid and make approximately $43 million dollars profit or continue to hold their shares and be completely at the mercy of GPT. I suspect the prospect of walking away with $43 million would influence any "rational heads to prevail".I suspect if Dexus were to up their anti to outbid GPT, their existing offer to buy out management control from CBA would still be binding. It would become a very expensive exercise. The volume of turnover on CPA today would suggest that either or both parties are increasing their holdings to the extent allowed. I'm happy to sit back and wait to see the outcome. I suspect CPA holders are going to prefer an offer that completes quickly and is not subject to the delays per Dexus's existing offer. As I said, I am impartial as to who wins.
At close of market the entire A-REIT sector is down 1.16%. Dexus is down 0.47% and GPT is down 1.66% in the closing auction Dexus dropped half a cent while GPT lifted by one cent. You have to remember that tomorrow is options settlement day for this month and it is not unusual for the market to be pushed down the day before. I'm not choosing sides, I'm happy to trade both dxs and gpt, but I wouldn't put too much into todays price actions as an indicator of the markets support for either bid. Subject to Dexus revising their bid, at this point in time GPT has the superior bid for the CPA shares.
I have to correct my early post, the papers indicated this morning, if successful in their bid GPT will sell six (6) prime assets into GWOF. If GPT gains control of 85% of CPA then Dexus will have two choices, either sell into the bid and make approximately $43 million dollars profit or continue to hold their shares and be completely at the mercy of GPT. I suspect the prospect of walking away with $43 million would influence any "rational heads to prevail".
I suspect if Dexus were to up their anti to outbid GPT, their existing offer to buy out management control from CBA would still be binding. It would become a very expensive exercise. The volume of turnover on CPA today would suggest that either or both parties are increasing their holdings to the extent allowed. I'm happy to sit back and wait to see the outcome. I suspect CPA holders are going to prefer an offer that completes quickly and is not subject to the delays per Dexus's existing offer. As I said, I am impartial as to who wins.
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