The beginning of the end.

Struer to follow the path of Saab's Trollhattan?

Graham

Good point 😮

Let's wait for an official statement from B&O.

MM

JanB wrote:

The notice states that Sparkle Roll trading in luxury goods, is interested in buying all the shares in Struer-company if they can be acquired for a 'reasonable price'. I already owns Sparkle Roll 5.57 per cent. B & O shares.

Of course everything is for sale if the buyer AND the seller have a common understanding on what "reasonable price" means. At <6% ownership, they have no chance of buying the company if the owners don't want to sell. I'm open for offers 😁

Interesting times. On the brink of a possible world trade recession. China imports will fall away/ become too expensive. Home grown industries will reappear. So is the strategy for B&O to ride-out what's coming, knowing that the cheap competition may fall away? Or sell up whilst there is a buyer in the market?

Graham

Volvo Cars have a Chinese owner, and are still a brand with a swedish/scandinavian image, with the design done in Sweden.

Hopefully (and most likely) B&O will still be able to keep the danish brand image. 

Another article - the chinese are turning on the heat on B&O - article here (in danish again) http://www.business.dk/detailhandel/analyse-kinesisk-presbold-paa-bo-bestyrelse

"It is highly remarkable that the Board of Directors of Bang & Olufsen (B & O) now after months of speculation naming the interested buyer who has rumbled in the wings since november last year when the board announced that there was an interest to buy the company.

This is striking because the name of the interested buyer who is Sparkle Roll Group based in Hong Kong, appears in a stock exchange release without an offter put forward which the Board would recommend or that Sparkle Roll for that matter has withdrawn.

After months of negotiations, Sparkle Roll has now lost patience and turned the heat up on the B & O board. Sparkle Roll wants the Board's recommendation of a tender offer from the luxury group based in Hong Kong.

But the stock market has speculated the B & O share to more than 70 kr. Per share equal to the market value of over 3.1 billion. kr.

Just this morning's rise in share price alone has increased the value by more than 100 million. kr.

Analysts: Chinese people hope for cheap trade with B & O

But B & O is not much more than 3 billion. kr. worth in value, according to Sparkle Roll, who wants to buy B & O. The Chinese want to buy B & O for a 'reasonable price' as expressed in the notification. But the price is close to the current price or just slightly above. Therefore, a share price of 70 kr. Per share is a problem, because there is no room for any further hefty premium to the shareholders of B & O. Traditionally, a buyer provides a 'premium' of about 30 per cent. or more to persuade the shareholders of a listed company to sell. In addition, the first commandment usually must be raised to give shareholders a feeling that they have negotiated a good price for the shares. It's clean realtor psychology.

Sparkle Roll has probably threatened the B & O board with withdrawing as an interested buyer. That would make the B & O share drop like a stone. Since the end of October last year when the stock slowly began to rise in the rumors that there could be a takeover bid, the share has increased more than 50 percent. The share will therefore most likely drop like a stone if Sparkle Roll withdraws their offer. The Board has for long recognized that B & O in its current ownership structure and a loss on operations is too small in the global competition. Therefore the need to find a new owner or partner is essential to B & O so they can survive.

Sparkle Roll has threatened to publish its interest through an official tender offer of the stock exchange, it is also called a hostile bid. But it is not interested in this course of action. For the Board of Directors would like to have as good an offer for the shareholders as possible. And a hostile attempt also threatens to end with the Chinese withdrawning the offer..

Sparkle Roll wants the Board's recommendation to convince the stock market that they are the only option for the company to survive."

Public relations firm Kreab initially said the Hong Kong-listed company was working on a possible bid. Later, the public relations firm clarified that should an offer materialize, it would emanate from a separate entity, wholly owned by Mr. Qi and called Sparkle Roll Group Ltd. BVI.