Is the market confused following the rejection of the KKR $14.50 indicative bid for Coles Myer?
If the market believes KKR et al will return to the table with a higher bid; the CML share price should be at least $14.50.
On the other hand, if the bid is dead, the share price should be heading back towards $10.60 (the price at which CML settled after the unveiling of Fletcher’s poorly received strategy plan).
However, CML shares yesterday traded only a few cents down – closing essentially unchanged at $13.65.
Perhaps investors believe KKR has gone away, but hope the contretemps has frightened Fletcher’s team into action.
Depend upon it, Sir, when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully.