The low valuation of HVN by the market has flushed out a bidder. Looks like a great deal for Dbay, P/E of under 10 based on last 6 months EPS run rate. Any chance of another bidder emerging?
You would think given its low forward P/E & low P/S that Harvey Nash (LON:HVN) would make a good earnings enhancing acquisition for one of the larger recruiters, they could strip out the board costs and immediately increase profitability too.
DBAY are value investors so should only really be interested in the highest risk adjusted return on capital so you would think that this low ball bid is partly flushing out potential industry bidders if there are any. If no bidders emerge then they have got a good price and will probably make a decent return by running the company as a private business. An industry bidder at a premium to 130p would give them a faster payout with less execution risk though so you would think that it must be on their radar if they are doing their job properly.
