M2 Group: Another day another takeover in telco land
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Morgans Financial Limited
In our view the deal makes good strategic and financial sense for both parties. VOC's offer for MTU (pre yesterday's share price weakness) was A$10.55 which is in-line with our A$10.50 valuation. We think there is a very low chance that TPM blocks the deal. The only way they could do this, in our view, is a full takeover offer for VOC. TPM just acquired iiNet so their balance sheet is stretched. Any potential bid for VOC by TPM would require scrip and/or an equity raising. We give this a very low probability. We make no changes to our forecasts or valuation but set our price target at the implied offer value of A$9.77 and reduce our recommendation from Add to Hold. Read the full post on the Morgans Blog (VIEW LINK)
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Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.
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Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.