Good morning!

Here is yesterday's report, apologies for it being late.



Lavendon (LON:LVD)

Share price: 218p (up 6.9% today)
No. shares: 170.0m
Market cap: £370.6m

Another potential bidder emerges - great excitement for Lavendon shareholders, as a second potential bidder emerges. This is the story so far;

22 Nov 2016 - a Belgian company called TVH Group N.V. (with branches worldwide, and turnover of E1.2bn in 2015) announces a final cash offer for Lavendon at 205p. This is the first thing the market knew that any takeover approach had been made, and Lavendon shares shot up from 139p to 197p.

TVH seems mainly interested in Lavendon's M.East business (where it is market leader), but also LVD's UK & French businesses are a good fit with TVH's operations in other European countries.

22 Nov 2016 - just 39 minutes after TVH's announcement Lavendon responded. It rejects TVH's offer, and declines to recommend it. The reasons given are concerns over execution risk, but more importantly that TVH had failed to gain enough support from LVD shareholders.

Lavendon reminds the market that it had recently issued a positive Q3 trading update.

25 Nov 2016 - in a very unusual move, it appears that TVH is taking a hostile takeover approach, by reporting that it has acquired 9% of Lavendon shares itself. Although some of these came from an institutional shareholder which had previously agreed to accept the TVH takeover bid. So TVH now either owns, of has irrevocable undertakings from just 16.9% of Lavendon shares - nowhere near enough to go ahead with its bid.

28 Nov 2016 - a second potential bidder enters the fray. Loxam SAS announces it has made a "preliminary approach" to LVD regarding a possible cash offer. It urges shareholders to take no action with regard to the existing TVH offer. So this looks like a blocking move, to dissuade more LVD shareholders selling out to TVH in the meantime.

Loxam is headquartered in France, and seems to operate in 11 European countries, plus Brazil and Morocco. It has turnover of E838m, so is a bit smaller than TVH, but more European-focused.

28 Nov 2016 - just 32 minutes later, LVD puts out its response statement to this latest bid approach. In it the company suggests that shareholders take no action. It points out that under the Takeover Code, Loxam has…

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