TSX:REI.UN - Post by User
Post by
mavion May 15, 2002 3:16pm
94 Views
Post# 5114761
Why hasn't someone tried a takeover?
Why hasn't someone tried a takeover?With the steady monthly cash flow in an uncertain stock market, it would seem RioCan should be a very attractive takeover target for any institution, especially those with huge regular cash outlays.
The major pension funds such as the civil servant or teacher pension funds should be falling all over temselves to aquire an asset like RioCan which would feed their pension payout requirements.
I have the feeling that most of RioCans shares are already in institutional hands, but not heavily concentrated in one or two funds.
This would make a takeover difficult or costly, as major holders of RioCan would be reluctant to part with such a reliable cash cow.
The only way to pry loose a majority of shares might be a prohibitably high offer.
Kimco, on the other hand might be prepared to offer such a high premium because their shareholders seem to tolerate a dividend return around 6%, so they could offer ip to $18 cdn per share.