Fortis is required by the Securities Industry Council to announce by 30 Jul, whether or not it will be making a general offer for Parkway. Deadline seems redundant however. Sh/h have to decide whether or not to accept Khazanah’s partial cash offer by 8 Jul, and remain caught in a Catch 22 situation. If sh/h accept the partial offer before 8 Jul, they risk losing out on a possible higher bid by Fortis.
If too many sh/h do not accept Khazanah’s offer, and the partial offer lapses, they risk Fortis deciding not to counter-offer. Meanwhile, we think most Parkway sh/h are likely to hold out till closer to 8 Jul before committing to a decision, in the hope that Fortis would make an earlier counter-offer, given its recent fund raising activities.
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