Money bags Tenaga run by incompetent negotiators

From the Edge:

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) ( Financial Dashboard) upped its offer for the acquisition of port operator Integrax Bhd ( Financial Dashboard) by 50 sen to RM3.25 per share yesterday, bowing to pressure fromPerak Corp Bhd ( Financial Dashboard), which had earlier rejected the utility’s original RM2.75-per-share offer unless it is raised to RM3.25.

The revised offer price represents a price-to-book ratio of 1.58 times based on Integrax’s audited consolidated net assets per share of RM2.06 as at Dec 31, 2013.

In a notice to Integrax’s board of directors filed with Bursa Malaysia yesterday, CIMB Investment Bank Bhd (CIMB IB), on behalf of TNB, said Integrax shareholders who had accepted the earlier offer will be entitled to receive the revised offer price.

Money bags Tenaga is run by executives who really don't know what they are doing.  They are just so desperate to acquire Integrax!  At first Tenaga executives came out saying they aren't going to pay more than their initial offer.

Now they are upping the price!  Not only is Tenaga rich, but they are run by dum dums who don't know how to negotiate and have lack of foresight.

Remember what I said before, Integrax is going to milk them like the cows they are!

Tenaga Technical Analysis

Tenaga is certainly on an uptrend.  But where are the trend lines?



Two major trend lines are both near RM 13 a share and RM 12.  Supposedly the resistance level at RM 9-10 a share should have held the upside, but markets tend to blow past this area especially if news is big which was in the case of Tenaga at the end of 2013.

For support, likely the range of RM 11-13 a share is possible to hold.  But we need to discern whether the rebound is strong after breaching the bottom of the range.  If it is not, we could see much lower numbers.  Better wait and see whether Tenaga has the strength at support levels first before jumping in.