Minerva deal falls though
It was billed as the deal which turned the property sector, it was seen by many as the start of a wave of substantial investment by Middle East investors but the takeover deal has turned sour. The deal to buy Minerva had been pitched at 160p per share but on the news late on Friday they fell 45p to 35p reflecting the uncertainty in the sector. The strange thing was that even when the deal was supposed to have been nailed on, the discount between the share price and the offer was too large - something was happening.
It seems as though the deal broke down when Dubai world was unable to come to a satisfactory agreement with Minerva's banks. Quite what the issue(s) was remains to be seen but no doubt we will hear more this week.
However, it has also been revealed that Minerva has enough money to continue trading in its own right and all of its projects are fully funded. That is not to say that times will not be difficult for the group, but the offer by Dubai World was not a rescue offer by any means.
While obviously a set back for the troubled property sector this cannot be compared to the financial sector where one group suffers and the rest fall. Minerva will no doubt be touring analysts over the next few weeks to reassure them about the group's future.
Share this..
Related stories
Worldwide stock markets under pressure
There is concern and anguish on the face of many investors today as worldwide stock markets continue to head south amid signs that the US economy is under pressure and the rising value of the yen, which hit a 15 year high against the dollar and a nine year high against the euro, is beginning to impact upon Japanese exports. The yen is seen by many as safe haven during troubled times and the ver...
Read More5 reasons to take out an ISA
On April 6th 2013 the new tax year begins, and another year of saving in an ISA starts. If you have been lucky enough to hit your Individual Savings Account (ISA) limit for this year, then you can start again from this date. However if you’ve not hit your limit you should be looking to save as much as you possibly can before the end of the tax year, as anything you don’t save this year will...
Read MoreGeorge Osborne rejects EU bank insurance tax
Chancellor of the Exchequer George Osborne is today set to fight EU plans to introduce a bank insurance tax which would be charged against all banks operating in Europe and used to set up a fund to cover EU bank failures in the future. There is concern from within the UK government that the creation of a bank insurance tax administered by the European Union could encourage excessive risk-taking in...
Read MoreHalifax offers cut-rate mortgages
In a surprising move Halifax has today offered new mortgage customers a 0.3% reduction on their mortgage rates up until the end of 2011 if they apply for a mortgage between 6 September and 3 October this year. Those who also hold a current account with the Halifax will receive a further 0.2% off their mortgage rates and this cut rate offer is available on all Halifax mortgage deals. It is uncle...
Read MoreCould some mortgage customers soon be receiving interest from their banks?
As the UK base rate continues to move headlong toward 0% this has opened up a rather interesting and intriguing debate regarding tracker mortgages which were sold back in 2007 as loss leaders advertising rates under the Bank of England base rate. While some of these rates were set at just 0.01% under the base rate there were others such as one by Abbey National which offered a rate which was 1% un...
Read More