Thai tycoon probably planning a high counter bid.
In its SIngapore evening update, IG Markets said Thai tycoon Charoen Sirivadhanabhakdi has extended his offer and could be consulting his financiers "to offer a deal that puts some distance between his and OUE's."
Charoen's standing bid is $8.88 a share offer, with OUE placing a higher counter bid of $9.08 a share. The ball is now in Charoen's court, and with F&N’s share price sitting at $9.42, "shareholders may have a figure not far off $9.50 a share as a reasonable price for the conglomerate."
Whether Charoen will go all in is still up in the air, and some twists may yet be unveiled, including a possible entry of a third party bidder, says IG Markets.
"The battle for F&N has always been a game of cat and mouse, but as yet we don’t know if Charoen squeaks or purrs. All the time he waits and extends deadlines there’s the slim chance a third party may enter the fray attracted by F&N’s impressive property portfolio and its household soft drink brands, not forgetting the huge cash pile it is sitting on from the sale of APB."
More From Singapore Business Review