TS03 Inc Trust Units TSTIF

Fortive: Threat or Opportunity

[SunnyShadow]

Fortive may look to acquire of kill TSO3.  Acquisition would be non-accretive to earnings but protect Fortive's ASP earnings.  Another avenue opened to Fortive, frequently used by large competitors with a dominant market share, is to starve the smaller firm by preventing it from closing sales either through predatory pricing or other marketing actions.  A consequence is sometimes that the smaller firm may end-up being acquired by another large concern (say Stryker for example) which then emerges as a viable competitor.  For the existing shareholders of TSO3, the latter is not a desirable outcome as the acquirer would close a purchase of TSO3 at a ridiculously low price.

Again, the only way to prevent that appears to deliver sales of VP4s.  No indication of significant progress so far.