Hi Everyone

Does anyone have any ideas on Scottish & Newcastle. I bought into them when they were at 393p thinking that selling of their pub estates would hike price up. Also, I thought their price was quite low and price would climb again.

However, price has decreased a little since then.

Does anyone have any ideas about the company and a target price in short term as the pubs will be sold off prior to christmas.

Thanks

Did you buy before they went ex-div? That was 13 August I believe, so I think you must have. If so that an extra 30p in your pocket/bank! But you should already have received that. (1st Sept pay day).

Selling off estates or anything else always takes longer than one expects. If SCTN panic to sell they will get a lower price. Those who might buy (Whitbread: Premier Lodge) will use delay as their barganning ploy to avoid overpaying. If the Hotel market improves meanwhile any buyer could find the price rising, the more so if other potential buyers appear.

Then there is this rumour from the Sunday papers:
Spirit, the pubs group backed by US private equity firms Texas Pacific and Blackstone, has tabled a 2.6 billion pound bid for Scottish & Newcastle's SCTN.L 1,400-strong pub estate. The offer is 300 million pounds above City estimates of what the estate would fetch although a rival bid from Laurel, another pubs operator, is only 500,000 pounds behind Spirit's and City observers have said the outcome of the auction could still 'swing either way'.

I'm not sure which paper carried that probably the Sundau Business or whatec=ver its called now!


Fly by Night

Red

Agreed Red the sell off is taking a long time as it often does but no reason why it wont happen as and when.
Scot & New. are not exactly setting the world alit share movement wise currently maybe due to the lack of progress on the sale plus there had been talk of the dividend being lowered plus the change to their reporting arrangements which will alter the usual flow next year. Plus not all overseas divisions did that well in the last reported period.
But the dividend currently is good and a lot of people hold them for that income potential and others may be attracted to buy them for that reason.
So all things considered although it may take time the share price I feel should rise.
Wait for the next report/announcement which will include the sales of beer over the hot Summer period, those figures should be good and should in theory help the share price and of course once the coffers are clanking from sale of the pubs I feel (and remember I'm no expert just a humble bunny) it should all add up to a rise. Maybe even an extra payment out to shareholders... Stockbunny