Goshawk is target for takeover.

-Dealers think the company rejected an offer of about 40p.
-Rumours of a bid circulate from time to time.
-Agreeing a refinancing deal with its creditors
-The stock is worth a punt

What do you think of Goshawk getting takeover?

rasool, this has been in the pipeline for a while and if memory serves me correct i do believe they rejected on offer of 43p just a couple of months back. I`ve bought the stock in october at 36.9p so this sort of thing is what i`m waiting for. Please keep this thread upto date with any news. Thanks.

The reason this company is interesting is that it has no legacy issues in Goshawk Re, it is not owned by demanding VC funds that recently launched it and want it floated in five minutes, the management is focussed on underwriting, it entered the re-insurance cycle at a perfect time, it has a good (by reputation) underwriter out of the ACE stable and even its bankers have taken a stake in the business.

That said it may be that those same bankers have placed that stake in the last 24 hours or it may be another party with some profits earned elsewhere in the last twelve months to offset for tax reasons, but it appears that, at face value, there is a real prospect of the "new" Goshawk being a strong profit centre around which a real business is developing.

Tax losses from the now defunct Lloyd's side should be of value to the ongoing business too although those losses may restrict the dividend paying ability for quite a while until the balance sheet is settled.

On your point about the r/i market rates coming off I think you might usefully read the recent Benfield report (they are big reinsurance brokers) which reported that the December renewal season was "diciplined". There is little movement in rates overall now that rates, terms and conditions have hardened strongly for three years. Broadly, properety R/I rates came off by 10% to 15% on the bigger better risks but anything with some history that was being moved around to new underwriters was either as before or a small increase. Meanwhile the longer tail business saw some further increases for all but the very best risks.

Also the reserve strengthening of all those insurers with legacy issues must not be underestimated. Swiss Re and Munich Re are both still having a very tough time.

While I do not agree that we will see 100p this year, I do see a 40% gain to 55p over the year as a quite sensible target price. It may come much soon if a bidder were to emerge. The bidders will be sniffing around after the Feb/March reporting season IMHO.

Looks like we may see a late burst of interest into defensive sectors such as Insurers if this market continues to fall.

Safer by far.

These shares are bouncing back to 40p mark and still waiting bidders

People will be looking at moving into the defensive stock sector whilst earnings are out.GOS could be a great play and see alot of money moving generally into the insurance sector.

The RE business did not have any major claims arising from this years hurricane season which should see underlying profits in good order.

YES IT IS

From Times.com.....

Smaller capitalisation shares

The cause of recent weakness in Goshawk Insurance Holdings, the former Lloyds of London vehicle, came to light as SCPIE Holdings, the Californian insurer, declared the sale of its 4.1 per cent stake. With that overhang cleared, Goswhawk firmed p at 32p.

Directors buying shares in last two days (177350 shares)

nice one just, maybe they know something we don`t and are buying in ready for a move north sometime in the future.....???

Doubled my holding at 31p to average my price after the SCPIE holding was sold. That looks like a good move right now after the steady rise of the last ten days or so and it reduces significantly the level I need to reach to get back to all square.

I see a lot of positives in the business and unlike a recent message I do not see any further losses coming out of the Lloyd's business and hitting the results as the capital backing the Lloyd's syndicate was ringfenced from the rest of the business, so I understand.

I agree, after ditching Chris Fagan its a perfect time to get all the dirt out, blame him for it, and start from the lowest possible level. After that all the praise goes to the new men at the top.

We've seen a 20% rise in the last forthnight, without any news apart from the directors buying in. I'm tempted to cash in, but I suspect there'll be more good news to come or at least the price will catch up with its P/E ratio and yield. Rather than the earnings and yield catching up with the price!!

P/E ratio less than 5 and yield of 7%.

Why has Phoenix amassed over 28% ?

Why is Goldman buying ?

Why is Fidelity in ?

Answers on a postcard as to when the bid is ;-)