keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 4,586
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Post by keitha on Jan 16, 2024 10:48:12 GMT
Youngs are bidding to take over City Pub group
Offer is £1.0875 per share plus 0.032658 Youngs shares per City pub share.
at the time of the offer Youngs shares were at £11.11 and City Pub Group at £1.35
now Youngs shares are £10.85 and city Pub group £1.40 this means the premium being offered has fallen from 6.8% to 2.47% ( indeed as I type City pub are £1.41
so the question is why am I seeing people buying quantities < 100 shares, when you add the costs of buying those costs will more than wipe out any potential profit, the meeting is tomorrow, the takeover date not yet clear.
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Post by mostlywrong on Jan 17, 2024 11:06:17 GMT
Youngs are bidding to take over City Pub group Offer is £1.0875 per share plus 0.032658 Youngs shares per City pub share. at the time of the offer Youngs shares were at £11.11 and City Pub Group at £1.35 now Youngs shares are £10.85 and city Pub group £1.40 this means the premium being offered has fallen from 6.8% to 2.47% ( indeed as I type City pub are £1.41 so the question is why am I seeing people buying quantities < 100 shares, when you add the costs of buying those costs will more than wipe out any potential profit, the meeting is tomorrow, the takeover date not yet clear. My understanding is that the penny-packet lumps of shares are purchased/sold by the ETFs of this world, because they are constantly balancing their portfolios to match the indices against which they are measured.
In addition, Youngs is an AIM share on a market that seems to have a Wild-West mentality anyway!
Looking at yesterday's trades on the LSE for Youngs, there were a dozen trades of fewer than 10 shares - not even £100 per trade. Overall, I doubt that more than 9,000 shares were traded during the day.
Bear in mind that the big boys will have negotiated mate's rates for their trades, and we will be talking pennies. The spread appears to have been 25-30p on a £10 share. There were very few trades in the City Pub Group.
There might be other reasons but those are my thoughts. It is particularly noticeable on the FTSE-100 shares when there are big movements and the ETF computers (and this is all computer based trading) struggle to keep the ETF(s) aligned with the indices. Of course, that doesn't stop the doom and gloom merchants declaring that it is market manipulation!
MW
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