What would you do id you held SYD shares now?

Hi Paul, I missed the chance to ask you and Peter your thoughts on the weekly webinar. I was wondering what you (and Peter) would personally do if you held SYD shares now. Hang on for a higher offer or assume the takeover deal is off and sell now? Also,on the assumption that no further offer eventuates, do you think the share price will drop significantly or has it formed a new baseline?

A: I am surprised that the market is so heavily discounting the indicative bid for Sydney Airport  (last ASX price $7.75, indicated bid price of $8.45). It is a quality bidding group that is enhanced by Australian Super joining. I have no first hand knowledge, but my sense is that the bid group won’t go away and at some stage the Boards of Sydney Airport will ‘talk turkey”. If you can be patient and don’t need the money, my inclination would be to hang on.

I think the last paragraph of the Boards’ response to the improved offer of $8.45 is interesting: “The Boards are open to engaging with the Sydney Aviation Alliance should the Consortium be prepared to lift its indicative price to appropriately recognise long term value for Sydney Airport Securityholders”.


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