Marabese

Going on the cheap

With two recent takeover's/mergers, including Northern Foods by Ranjit Boparan, (whose business' include poultry and Harry Ramsden's) for 73p or £342 million. The other being the merger of International Power with GDF Suez's larger Energy International business (who control 70% of the new shares).

Although Bopran's offer was better than Greencore's derisory paper bid of about 43p a share, to my mind he has bought the company on the cheap, I would have thought a fairer value for the company would be in the region of £1.

Regarding the International Power deal, which was sweetened by a 92p special dividend, although it makes sense - their combined power generation is 66,000MW (with a further 22,000MW capacity in the pipeline for 2013), however giving control to GDF strikes me as being on-the-cheap. At least shareholders should see the company perform well over coming years.

If nothing else, at least De La Rue still retains it's independence for the moment. Though as mentioned previously 'In the bring and buy sale of British business, everything must go!'

Remember as 2008 has shown, shares and other financial assets can go up and down at frightening speed. Don't buy any, unless you know what you are doing and can afford to lose the money.

Marabese