By Tom Winnifrith | Monday 13 March 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Earlier today the Takeover Panel slammed the dodgy antics of Dave King on numerous counts and ordered him to launch a 20p per share, £14 million, bid for the 85% of Rangers (RFC) shares he does not own. King has responded with a statement of complete and utter horseshit showing that he holds the law of the UK in contempt. King has issued a statement via Rangers which it is worth dissecting for the half truths and bollocks it contains. The statement follows with my comments in bold.
I do not agree with TAB’s much delayed ruling nor follow its logic and I shall take the appropriate time to reflect upon it and consider the best course of action for myself, RIFC and its shareholders. My view on one individual not being able to exert undue influence on Rangers is already well known.
The fact it was delayed was due in large part down to King not answering correspondence on time, saying he could not appear on certain dates, etc. That is made clear in today's judgement. The best course of action for Ranger's shareholders is for you to obey the law and bid since RFC is not worth anything like 20p per share. For you it is clearly not to bid since you would be flushing up to £14 million down the pan. When you consider what to do, whose interests will you put first?
The complaint to the Takeover Panel was made by RIFC’s former Chairman, David Somers, as part of the old Board’s efforts to preserve their positions without regard to what was best for Rangers Football Club, its supporters and shareholders. Today’s decision by TAB is part of the price I have had to pay for being determined to rescue Rangers Football Club from its previous regime and the drastic consequences of their actions. I do so willingly.
Dave you paint yourself as a martyr, Saint Dave of Ibrox. You are no martyr you just broke the rules. What happened today is the price you pay for breaking the rules pal. The law about concert parties is there to protect shareholders and it applies to everyone. You are not being singled out or do you think that you, alone, should be above the law? Are laws just for the "little people?"
It is my belief that the TAB has not understood the true nature of what occurred at Rangers and the tremendous role that the activism of supporters played in ensuring regime change. I am only one of a vast number of Rangers supporters and shareholders who fought to rescue our Club. The Rangers Football Club should never have become caught up in a takeover struggle. Those who placed it in that position bear a heavy responsibility.
Ok Mike Ashley is a complete tosser with a gut and an ego both the size of Sunderland - no-one is going to argue with you on that point. But it is you who broke the rules not him. The Takeover Panel is there not to make moral judgements about the farcical battles that have plagued Rangers but simply to apply rules laid down in law. The law applies to all. Even to you Mr King.
I do not believe that there is any substantial group of RIFC shareholders that would be willing to sell its shares in RIFC at the price at which the TAB has determined I should make an offer. 20p is not a price that I personally believe represents a fair price for RIFC’s shares, nor is it the price at which shares in RIFC are currently trading.
You may be right in that most shareholders are lifelong blue-noses who would not sell at any price. You are certainly right that 20p is not a fair price since Rangers shares are in reality almost worthless. There is no liquid market in the shares, so to say they "trade" in the way that shares in BP or Glaxo trade is misleading. A matched bargain trade is not an indication of fair price as you well know.
I would anticipate that, if I was to proceed with an offer on the terms TAB require, it would be rejected by the overwhelming majority of RIFC’s shareholders and therefore not receive the level of acceptances necessary to proceed. I cannot see how making an offer that is doomed to fail can benefit RIFC’s shareholders.
You may be right in that few would take up your offer. However, that is irrelevant. You tried that line with the Takeover Panel and they told you that it was irrelevant, something you neglect to mention in today's release as you try to kid Ranger's poor supporters yet again as to what is actually going on.
The law is the law. Dave King, you have broken the rules now you either obey the Takeover Panel Ruling or you face the consequences and must do so with an admission that you think that, unlike your fellow man, you are above the law. You are not. as you will, hopefully, soon find out. Issuing misleading releases on the Rangers website will not change a thing.
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