Wednesday, March 24, 2010

Canon in the driver seat; what’s next? Delisting Oce?

Well the news is out Canon now holds 87.51% of the total issued share capital of Océ. posted the release:
In part, "The total number of shares held by or tendered to the Offeror (including Océ's financing preference shares) as of the Post-Acceptance Closing Date represents approximately 87.51% of the total issued share capital of Océ (including Océ's treasury shares)"
You can find the press release on Océ's website here: "CANON HOLDS 84.65% OF OCÉ ORDINARY SHARES"

In Canon's original press release on January 28th, 2010 "Recommended cash offer by Canon for all the issued and outstanding ordinary shares of Océ N.V. to create global leader in printing industry"

Canon spoke about the details of the offer.

Under the heading: Liquidity and delisting it goes to say "Subject to the Offer being declared unconditional (gestand wordt gedaan) and in the event that the Offeror has acquired 95% of the Shares, the listing of the Shares on Euronext Amsterdam will be terminated as soon as possible. This may further adversely affect the liquidity and market value of any listed Shares not tendered."

I am not a stock broker but it appears that if Canon acquires 95% they can delist the stock and anyone left holding stock is out of luck? If they are at 87.51% now that would seem prudent to dump the stock so that your investment is not completely lost, except that the Post Acceptance period is over and I do not know how that may affect tendered shares now. It would seem that Canon has every intention to go through with the purchase and that the groups that wanted more for their stock didn't get their wishes.

In a Reuter's report they stated: that "Canon made their offer unconditional after a Dutch court on Wednesday denied a lawsuit by Hermes Asset Management and the Universities Superannuation Scheme (USS) who opposed Oce management's handling of the offer and argued Canon's offer undervalued its target. Orbis Portfolio Management, which owns about 10 percent of Oce shares, had also opposed the deal."

It appears that we have now seen history strike four times in a row! Once with Konica Minolta's acquisition of Danka, Twice with Xerox's acquisition of Global Imaging Systems, Three times with Ricoh's acquisition of IKON and now for a Fourth time with Canon's acquisition of Océ.

Now the stage is set; 4 Global Mega-Manufacturers are on the starting line prepared to make an Olympic 100 yard dash! With the proving grounds in the areas of Managed Print Services and Production Print it is anyone's race. This is a very scary time for anyone in this industry as the list of refugees grows! Be watching for upsets in the Fabulous 4; there are still competitors lurking in the shadows that could at any time appear as a newly positioned contender for the crown!

Happy Sale'ing…

Pirate Mike

1 comment:

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