RE:RE:RE:RE:Let's not lose sight of the basic factsMy two cents: I'm not really interested in who. I want to know how much and then how many.
Here's what I mean.
Someone wants to buy LB. The bank hired some experts to handle a potential transacton and launched a strategic review. A bank doesn't do that without a good reason. It has been reported that there is one bid and that there have been discussions with other parties going back to June.
But we don't know if there is a truly serious offer in the works or just some half interested bargain hunting.
If you are long, you have to hope there is at least one committed bidder. It goes to another level if there are two or more, of course. Because that might drive up the price.
But it doesn't matter if some expected bidders aren't interested. Since there could be ten or more potential bidders it does not matter if two are out.
If you are hoping for a bidding war, it just takes two.
And as anyone who has followed Toronto real estate knows, it's also true that one aggressive bidder can put down a big offer to make sure he gets what he wants.
So. Is anyone out there really determined to buy LB? Or is there some tire-kicking going on here, at a time when bank valuations are on the low side? What I have seen doesn't address that.
It may become a lot more clear next week. I'm hoping there will be clues as to whether the board believes at least one acceptable offer is in hand or on the way.
In the meantime, it makes sense to tune out any nonsense. And yes, I was triggered by one post on this site that was drafted with a distant relationship with the facts.
How much. And then, how many. That's what matters to me here.
Good luck to all.