Perhaps not quite as exciting as a James Bond film, but there is new intrigue at Pinewood-Shepperton, the company behind the UK movie studio.
Earlier this month Pinewood revealed it had received an approach from property company Peel Holdings, which owns 29.78% of the business. The potential bid was pitched at around 190p a share, valuing Pinewood at around £90m.
Now another bidder has emerged, sending Pinewood shares 12.13p higher to 203p. Analysts believe Peel is still in prime position but may now have to up its offer price. Analyst Malcolm Morgan at Peel Hunt said:
Though Pinewood is a unique asset from both a film and a property perspective, we are still of a view that Peel,
given its existing holding and the potential synergies with its existing activities, remains in a leading position to launch a successful bid.
A competing bid would have to be either at such a level to compensate Peel for the lost benefits of the synergies (so
making it hard for a third party to itself add value) or risk having Peel retain a significant and perhaps discontented minority stake.
Peel may have to raise its indicated price to counter the third-party risk. Our estimate of the built-out potential of Pinewood pre the bid was 208p.
