DTZ, the property management consultancy that is currently trying to sell itself, has announced Australian firm UGL as its preferred bidder. The news has sent DTZ shares higher although the back story to the deal is not pretty for investors.
The value of DTZ all but evaporated on Monday after the firm admitted its huge debts would mean shareholders would receive virtually nothing from any sale.
As a result of that statement the stock fell 85% yesterday, down 92% on the year. Today's news of a possible tie up with UGL has obviously got some investors hoping to squeeze at least some value from their holdings.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Whether they can or not is an open question as the transaction is by no means a done deal.
As a business proposition, though, the Aussie takeover makes some sense as it would create one of the biggest property servicing companies in the world employing 24,000 people, and operating in 45 countries.
UGL now has until the 6th of December to make a firm offer.
BS
-
Reeves urged to axe stamp duty from UK shares held in an ISAChancellor Rachel Reeves is reportedly considering axing stamp duty from UK shares held in stocks and shares ISAs. What could it mean for your portfolio?
-
Family investment companies explained: how the ultra wealthy shield their money from the taxmanWealthy families are increasingly turning to family investment companies to keep more of their money away from HMRC – but what are these arrangements and how do they work?
