Nikko Cordial: 6.6% Shareholder Southeastern Says Citi Bid Too Low

Count Southeastern Asset Management are among those saying Citigroup's (C) increased takeover bid for Nikko Cordial (NIKOY) is still too low. According to Bloomberg, Southeastern owns 6.6% of Nikko:

"We have increased our appraisal of Nikko Cordial above our initial assessment of 2,000 yen per share,'' said Mason Hawkins, chief executive officer of Memphis, Tennessee-based Southeastern Asset in an e-mailed statement.

Things have been, and remain, interesting with this story.

Comments

[Lance:]

CSAM and Harris are playing a busted flush and blowing smoke. If Citi walks from the tender, they both lose perhaps as much as 100 million US$ in potential profit, possibly overnight, and possibly a lot more later. I'm sure they understand this, even though they apparently think that no one else does. They will tender, although they will try to disguise their play up until the moment that they make it.

Sure, Nikko, someday, is probably a 2000 yen stock. But exactly when, and for how long? As we enter the 5th year of the bull in Tokyo, it could also be a 1200 yen stock by, say, August. The hedgies aren't stupid, we have to presume; it seems that they just enjoy sounding that way sometimes.

Lance

2007 Mar 25 07:44 PM

[Lance:]

Mason Hawkins might note that Harris et al sold a bunch of their stake, just to "lock in" profits of, course. Why might they do that? And of course what do you think will happen to that stake that they sold? (It gets tendered, naturally.)

Eisai is tendering. Mitsubishi Logistics is tendering.

Maybe Mason would like to, ahem, explain, his valuation metrics?

And put a time frame on his valuation?

I didn't think so.

Have fun with your stubs, Mason, and kiss your bonus down a notch.

But then, you'll tender at the last second, won'tcha, big mouth. ^_-

I don't see you in there bidding, say, even 1725, you pompous smoke generator.

Lance

2007 Mar 28 12:35 AM