Link Administration has received a bid for its Banking and Credit Management (BCM) businesss from Pepper European Servicing. At the same time, the board has provided Carlyle with access to due diligence, regarding the $5.38/share bid for the company.
Regarding the Carlyle bid, the broker feels a bid -20% below a recent offer by the same suitor is a hard sell for the board to recommend. The target price remains at the Carlyle bid price and the Add rating is maintained.
Sector: Software & Services.
Target price is $5.38.Current Price is $4.77. Difference: $0.61 – (brackets indicate current price is over target). If LNK meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).