SWM – Credit Suisse rates the stock as Neutral

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The company has effectively sweetened its offer for Prime Media ((PRT)) by consenting to the payment of a 3.0c special dividend. Based on the last close, Credit Suisse calculates this implies an offer price of $0.20 per Prime share.

While risk around the completion of the transaction is significantly reduced, some uncertainty remains. Credit Suisse notes Bruce Gordon, who holds 11.6% of Prime voting shares, has stated he will not support the transaction. Neutral rating and $0.42 target maintained.

Sector: Media.

Target price is $0.42.Current Price is $0.37. Difference: $0.05 – (brackets indicate current price is over target). If SWM meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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