I usually ignore rumors but when they come on the heals of an interesting conversation management recently had about “unlocking value”, my “I’m interested” antenna goes up. PLUS, several of you have emailed me about it so I thought I would address it.
Today we are hearing rumors that someone may be interested in purchasing our little ACAS. The rumor is UBS is advising Icahn/GE Capital on a $14-$15 bid. The rumor is pretty wide spread as I have got it from several arenas. Now we know ACAS currently trades at a 30% discount to its NAV vs the industry that trades at 1.06X NAV. So, there is value there. We also know john Paulson sees the value as he has a 12% stake in the co.
Last week there was a conference in which the following report was filed:
From the conversation it is clear management is contemplating various ideas to unlock shareholder value. This could vary from selling parts, structure change or an outright sale. Whether or not buyout rumors are true, it is clear management’s running a whole host of ideas around. Now it is not uncommon when management publicly announces they are looking a different ideas to “unlock value” you get outside parties becoming interested. It remains to be seen, however, if they are anything more than tire kickers.
Do with it what you wish but there are my two cents….