Its board confirmed a $9.50 per share non-binding offer from Canadian firm Telus at 8:21am. The news pumped up the shares by 29 per cent, as people bought stock anticipating a firmer bid or to cover their shorts (depending on whom you ask).
But by afternoon, Telus had changed its mind. Instead of wanting a peek at Appen’s books, which is what the latter’s board had expected, the Canadian suitor just wanted out.
Appen’s board says Telus gave it no reason for changing its mind.
That’s the second time this month that a deal’s got people really excited and then disappointed. Private equity firm CVC’s chase (and then dumping) of Brambles was the other one.
What’s the takeaway from the two cases? We reckon there’s a price mismatch between targets and suitors, and it’s stretching out early-stage talks and killing deals.
The forestry investment giant appears poised to harvest another big Australian asset, this time calling in advisers to sell some of its holdings in NSW.
