Wednesday, 31 August 2016
Last updated 12 hours ago
Feb 14 2012 | 1:35pm ET
TPG Capital is doing what it can to present its planned purchase of GlobeOp Financial Services as a fait accompli, but investors aren't buying it.
The private equity firm's bid for the hedge fund administrator is a 50% premium to GlobeOp's share price the day before the deal was announced. But shares are now trading well in excess of that, after SS&C Technologies last week urged GlobeOp shareholders not to tender their shares until it has a chance to make an offer of its own.
TPG said yesterday that it won irrevocable support for its US$800 million deal from shareholders owning 36.75% of GlobeOp shares. TPG itself owns a 5.2% stake.
But analysts suggest that SS&C, in which The Carlyle Group holds a 36% stake, could pay more for GlobeOp due to better synergies with the company. "It's entirely possible we could see SS&C coming in and then TPG having to come back and pay more," JO Hambro's Mark Costar told Bloomberg News. "The TPG bid is opportunistic and significantly undervalues the company."
Oriel Securities predicts that a bidding war between SS&C and TPG could push the premium paid for its shares to 75%.