News blog
Blue Oar
- BY: Andrew Hore |
- POSTED: 18/12/2008 |
Blue Oar has sent out a circular recommending that its shareholders ignore Evolve Capital’s bid.
The Aim adviser says that trading since it released has been in line with expectations. Secondary trading commissions have been strong and the broker is conserving its cash. Annual cost savings of £1m are planned. An update will be published in January 2009 after the end of the financial year.
This sparked a 1.5p rise in the Blue Oar share price to 11.25p each, which values the company at £18.7m. The bid/offer spread is 10.5p/12p.
Evolve Capital shares fell 0.5p to 9p each although they are above their low earlier in the week. The Evolve bid of 1,025 of its own shares for every 1,000 Blue Oar shares values each Blue Oar share at 9.225p a share.
The Blue Oar share price is well above the bid value. Blue Oar outlines a number of reasons why shareholders should reject the bid but the increasing premium to the bid value is the most persuasive.
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