Q: Hello5i, Could you comment on the takeover of MDF by KKR also could there be a rival offer. I own MDF and am considering selling MDF.
5i Research Answer:
MDF has announced a deal to be acquired at $5.80 per share by KKR. It is a friendly deal, all cash, and thus likely to be completed. There will be few parties that would want to compete with KKR on a deal. It has struggled, and it fact the offer is less than half of the company's $12 IPO price in 2000. There are three large shareholders (above 12%) who could argue for 'more' so despite our view we would still HOLD it for a period of time.