Late last year, Global approached GCap over a potential 190p per share offer, valuing the company at £313m, which was duly rejected.
After several weeks of speculation regarding Global’s intentions, last week the Takeover Panel issued a “put up or shut up” notice giving Global until 5 March to make an offer for GCap, or wait six months to launch another takeover bid.
A source familiar with the discussions believes Global will have to mount a bid “considerably higher” than 205p if it is to be successful second time around.
“The alternative to sticking with [GCap chief executive] Fru [Hazlitt] looks like a simple cash sale to Charles Allen, but in reality there is no such thing,” he said.
“Firstly, there are regulatory problems, with a number of places where assets overlap, which will mean a long competition review.
“Secondly, Global has to come forward with a package that GCap’s advisers are satisfied they can complete, but I’m not convinced they’ve got the money.”
Meanwhile, a source close to GCap believes shareholders are increasingly warming towards Hazlitt and the idea of rebuffing Global’s takeover overtures.
“Fru is a great leader and knows what she’s doing and that is
coming across to the shareholders,” the source said.
After several weeks of speculation regarding Global’s intentions, last week the Takeover Panel issued a “put up or shut up” notice giving Global until 5 March to make an offer for GCap, or wait six months to launch another takeover bid.
A source familiar with the discussions believes Global will have to mount a bid “considerably higher” than 205p if it is to be successful second time around.
“The alternative to sticking with [GCap chief executive] Fru [Hazlitt] looks like a simple cash sale to Charles Allen, but in reality there is no such thing,” he said.
“Firstly, there are regulatory problems, with a number of places where assets overlap, which will mean a long competition review.
“Secondly, Global has to come forward with a package that GCap’s advisers are satisfied they can complete, but I’m not convinced they’ve got the money.”
Meanwhile, a source close to GCap believes shareholders are increasingly warming towards Hazlitt and the idea of rebuffing Global’s takeover overtures.
“Fru is a great leader and knows what she’s doing and that is
coming across to the shareholders,” the source said.
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