Gulf set to lift offer for Clyde
Tuesday 04 February 1997
Gulf was in last-minute discussions with Deutsche Morgan Grenfell, its adviser, yesterday at which chief executive, JP Bryan, is understood to have argued against the sort of increase that might be required to gain the support of some of Clyde's largest shareholders. Some major investors have indicated privately that they would be unhappy to take less than 135p a share for the oil explorer.
The gap between the institutions' expectations and the likely reality of Gulf's final offer sets the scene for two weeks of heavy investor arm- twisting and opens the door for a possible knockout blow from a white knight. It is expected to be a tense conclusion to what has been an acrimonious battle.
Tomorrow will also see Gulf launch a final attack on Clyde's valuation methodology. The main plank of its defence has been an attempt to persuade shareholders that a "going concern" value using its preferred cash flow valuation model would put a price tag on the company of up to 153p.
Gulf has consistently dismissed Clyde's numbers and insisted that its own 105p offer is a full and generous one.
During the bid both sides engaged independent oil industry consultants to add credibility to their claims, which increasingly focused on technical and oil company valuation.
Those arguments are thought to have split Clyde's main shareholders.
- 1 Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The one chart that shows how George Osborne is almost certainly going to be our next Prime Minister
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...