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Big Lots Inc. Message Board

  • jamespa12 jamespa12 Mar 29, 2011 12:44 PM Flag

    Financial Tmes

    FT is reporting that the co is going to be receiving bids from PE........that said the action suggests not much if any premium to todays price

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    • If someone wants in on the deal for low cash, the July 50 calls are sitting there waiting on buyers for only about 60 cents. Want more time?The Oct. 50's are about 75-80 cents.

    • Lyong, I love your enthusiasm, but you're a freak.

    • ..and we could have a Charlie Chan movie.

    • dont waste time waiting on a buyout, just sell covered calls against your stock and collect premiumn until the deal hits. no deal until late april so sell the april calls now and pick up good cash.

    • the market cap today is what, 3.21B.
      3.5-4.5B would be a wide range for the final price to fall into. If someone offered 3.5B that is about $47 a share. 4.5B is up near $60 a share. I read an article 2-3 weeks ago that mentioned, not a specific name, but just in general, that a Japanese company might be interested in owning a U.S. retailer. No specific Japanese company and no specific retailer. Since CVC has offices in Asia, if they are part of this ongoing process, there is no telling who, has who, for a partner in the final outcome. Reuters nevers seems to pick up these news stories. My investment software has Reuters. I guess, near the 20th of April, if that story earlier today is accurate on the 2nd round of bidding where only the strong survive, another clue may be leaked out. If I can survive these April options, I would give the matter a couple weeks, after the date, near which things are supposed to commence again, before I'd sell any May options.

    • Lyong222, It could be you will get your April wish. Two of three PE firms mentioned originally are still indicated as bidders. The third PE firm TPG is recent news. The other bidders at or below $40 may have been smaller PE firms, other retailers just kicking the tires or as Lind mentioned, this could be disinformation leak by some party as a ploy. Although this deal could be in the range of $3.5b to $4.5b which is not a very large deal, we frequently see PE firms partner up for bidding. Are you aware of any Asian PE firms that like US companies?

    • If the next round is around April 20th, the stock will be dead money in the mean time. All the while, the April options slowly lose value and expire. So, if a Belgium company is interested, it adds an international flavor.
      The earlier news story said that first rounders, too close to 40, were not invited back. So, the field may have lost 1-2, but yet gained 1-2. Let some deep pocket and very ambitious Asian company enter the picture.

    • The question is not whether Costco (or any other retailer for that matter) is a better merchant or whether such other reatiler has a superior balance. I'll take his word for it that Costco is a superior business on any metric. The question IS how much would someone be willing to pay for the business and balance sheet that is BJ (or BIG for that matter)? This ceases to be an exercise in equity portfolio management, but rather in M&A valuation.

    • Lyong22, Thanks.

    • You see guys like him (fundamental shorts) on every buyout related board. (Huang from GENZ comes to mind.) They don't seem to get that the game has changed, and that what they've been focused upon does not matter to a buyer of the company.

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