MediaRing Ups Bid for Pacific Internet
Posted on June 22, 2006
Congrats to our subscribers who have held on to Pacific Internet (PCNTF). Today, MediaRing increased their bid for the company to $9.50 per share. As I mentioned in this post about a month ago, I think PCNTF is worth between $10-$12 per share, so this new offer is getting very close to my estimated fair value of the company.
So what am I doing now? I’m still holding onto my shares for reasons related to taxes and the timing of a potential acquisition. All in all, I have no urgent reason to sell right now and of course there is still the possibility of a higher offer. At the same time, I would not be purchasing new shares at this price, since I suspect that, though management will reject this offer, they will have a very hard time convincing shareholders not to accept it.
Please Note: I first recommended Pacific Internet (PCNTF) at $7.60, and still hold a position in the
stock. All ideas, opinions, and/or forecasts, expressed or implied
herein, are for informational purposes only and should not be construed
as a recommendation to invest, trade, and/or speculate in the markets.
Any investments, trades, and/or speculations made in light of the
ideas, opinions, and/or forecasts, expressed or implied herein, are
committed at your own risk, financial or otherwise.
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This site may include market analysis and we may own shares in the stocks mentioned in our reports. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
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Apparently Media Ring has outlined a plan to increase it’s stake in PCNTF from current of 4.8 percent to 26%. I would guess that this buying will send the price up….
From a news article today (7/19/06) “MediaRing Ltd. was actively traded for a second straight day with volume of 11.5 million shares, and ended unchanged at 33.5 Singapore cents as investors continued to digest Monday’s news that it would increase its stake in Pacific Internet Ltd. to 26 percent from 4.8 percent in a possible takeover bid.”
-SCA