1. This gives them instant access to
2. Once completed, they will be
one of the 50 largest insurance companies in the
nation. This means increased exposure from analysts and
I don't see how they are going to get to $112 per
share tangible. Running the numbers gives me the $112
per share before the cash outlay of $362 million for
TNA shares. Inclusion of the cash reduction brings
tangable book down to about $70. That is less than now! I
may be missing something (I hope so). Maybe some can
shed some futher light on the subject.comments please.
Markel has had a history of making sound
acquisitions. BAsed on the history factor, I am sure that this
will be similiar. The possible Bond Ratings Downgrades
would not help earnings (Obviously) with the additional
Debt being brought on board. However, if, in the
history of MKL, you purchased when the price was 1.5x
tangible book, you would have made money...lots of it.
i have a list of companies on my
desk that i want to buy
i just wait for a
day like today
now that mkl is in my portfolio
it will be in for years
i did not make a
perfect buy but got in at 172
i am well pleased
this creates a great (IMO) buying opportunity. I
think people are still a little scared since the
Gryphon acquistion was (and still is) a little rough.
However, Markel does extensive due diligence and would NOT
overpay for a company. Even the Gryphon acquisition will
shortly prove beneficial.
The big drop today is simply a function of the
arbitraguers coming in to take advantage of the terms of the
acquisition. Since Terra Nova's takeover price is higher than
its market price, you can go long on Terra Nova and
short on Markel to lock in a guaranteed profit
(assuming the acquisition goes through).
had chosen to pay cash, you probably would not have
seen as big a drop. But it's all meaningless anyway.
Price and value are rarely the same thing and Markel's
management would not have made the deal if it wasn't in the
best interest of the company...this is why an honest,
shareholder-loyal management is a necessity.