OMEN
07-22-2007, 09:22 AM
American health giant Henry Schein has not ruled out raising its $2.70-a-share takeover offer for Software of Excellence if it fails to get to the 90 per cent mark at which it could compulsorily acquire the remaining shares.
The New York-based health software company's vice-president for investor relations, Neal Goldner, said Henry Schein would have three options if it got more than 50 per cent acceptances but failed to get to 90 per cent. Those options would be to walk away, to become the majority shareholder or to raise the offer price, he said. "But right now we haven't decided what we would do if faced with that situation. We're optimistic we will get to 90 per cent."
Mr Goldner said the company intended to run Software of Excellence as a stand-alone entity and retain management and staff if its bid was successful.
The offer is due to close on August 17.
By yesterday, Henry Schein had acceptances for 37.8 per cent of Software of Excellence's shares. This includes agreements to sell from Sydney firm Co-Investor and Software of Excellence managing director Brian Weatherly, who collectively own 23 per cent of the company.
Software of Excellence's independent directors have also recommended that shareholders accept the offer.
According to ABN Amro Craigs, the continuing strength of the New Zealand dollar and rising interest rates are making Henry Schein's bid look more attractive. ABN Amro Craigs has dropped its valuation of the dental software company's shares from $2.76 to $2.54.
Revised currency forecasts, rising interest rates (which meant that the risk-free rate of investing had gone up) and revised forecasts from Grant Samuel's independent valuation report had contributed to the 22 cent decrease, said ABN Amro Craigs analyst Mark Lister.
Because Software of Excellence earns about 85 per cent of its revenue from Britain it is highly dependent on the Kiwi dollar-British pound cross rate.
"For every day that the dollar stays strong, or gets stronger, the bid looks more and more attractive," Mr Lister said.
The broking firm is still advising Software of Excellence shareholders to hold on to their shares but says the bid is reasonable and shareholders should consider accepting.
The $2.76 valuation, which does not include a takeover premium, is in contrast to Grant Samuel's share valuation range for Software of Excellence of $2.70 to $2.91.
But Mr Lister said the fact that no counter-bidders had emerged put less of a focus on a takeover premium.
"Shareholders do need to be aware that this is the only bid on the table and if it does fail the share price will probably fall by about 50 cents."
- The Dominion Post |
The New York-based health software company's vice-president for investor relations, Neal Goldner, said Henry Schein would have three options if it got more than 50 per cent acceptances but failed to get to 90 per cent. Those options would be to walk away, to become the majority shareholder or to raise the offer price, he said. "But right now we haven't decided what we would do if faced with that situation. We're optimistic we will get to 90 per cent."
Mr Goldner said the company intended to run Software of Excellence as a stand-alone entity and retain management and staff if its bid was successful.
The offer is due to close on August 17.
By yesterday, Henry Schein had acceptances for 37.8 per cent of Software of Excellence's shares. This includes agreements to sell from Sydney firm Co-Investor and Software of Excellence managing director Brian Weatherly, who collectively own 23 per cent of the company.
Software of Excellence's independent directors have also recommended that shareholders accept the offer.
According to ABN Amro Craigs, the continuing strength of the New Zealand dollar and rising interest rates are making Henry Schein's bid look more attractive. ABN Amro Craigs has dropped its valuation of the dental software company's shares from $2.76 to $2.54.
Revised currency forecasts, rising interest rates (which meant that the risk-free rate of investing had gone up) and revised forecasts from Grant Samuel's independent valuation report had contributed to the 22 cent decrease, said ABN Amro Craigs analyst Mark Lister.
Because Software of Excellence earns about 85 per cent of its revenue from Britain it is highly dependent on the Kiwi dollar-British pound cross rate.
"For every day that the dollar stays strong, or gets stronger, the bid looks more and more attractive," Mr Lister said.
The broking firm is still advising Software of Excellence shareholders to hold on to their shares but says the bid is reasonable and shareholders should consider accepting.
The $2.76 valuation, which does not include a takeover premium, is in contrast to Grant Samuel's share valuation range for Software of Excellence of $2.70 to $2.91.
But Mr Lister said the fact that no counter-bidders had emerged put less of a focus on a takeover premium.
"Shareholders do need to be aware that this is the only bid on the table and if it does fail the share price will probably fall by about 50 cents."
- The Dominion Post |