‘Zero chance’: Shareholders bet Mike Ashley will raise his bid for Accent Group
The Platypus and HypeDC retailer’s shares have remained above Frasers Group’s offer price since the takeover bid was announced in mid-June.
Even as Accent Group admits there is a “real and heightened risk” it could face a hit to earnings amid “challenging trading conditions” , the market is still betting UK billionaire Mike Ashley's Frasers Group will have to stump up more cash to succeed in his attempt to wrest control of the company.
Ahead of the formal commencement of Frasers’ on-market offer worth 65 cents per share on Tuesday, the stock closed at 71 cents where it has sat since Frasers’ was announced in mid-June.
TAMIM Asset Management head of Australian Equities Ron Shamgar said the market is still eyeing “whether they improve the offer”.
At the current price Shamgar argued that Frasers is “just trying to steal it for a bargain, and they’re not going to get it. They have zero chance”.
