Replies to post #5669 on Arcam AB fka AMAVF

[charlie T colton]

RE:I don't know why ARNC didn't bid

Like the every other possible candidate, Alcoa didn't have the money to make a competitive bid against GE. The Alcoa split didn't happen until November (Alcoa Rises, Arconic Slips in Market Debut - Nov. 1, 2016).

Alcoa had $632 million in cash and credit of $1,500 million. $2,132 million is a lot of money but they didn't have a fart's chance in a hurricane against GE.

The supporting reference links are all in the post identified. From an earlier post (RE:initial conventional "take-over bid", "blockers" and possible counter bids. - 09/16/16.:


Feel free to suggest alternate financing options that I know will be available but I'm thinking that there won't be time to secure alternate financing AND work a successful counter bid against GE in the time available. I'm saying that cash is king.

OK. Lets look at some of the expected/suspected potential bidders.
Rolls-Royce (page 27) Cash and cash equivalents 30 June 2016 --- £ 2,287,000,000.
Honeywell Cash and cash equivalents 2016 Q2 --- $5,045,000,000 US.
UTC (Pratt & Whitney) (page 34) Cash and cash equivalents 2015 --- $7,075,000,000 US.
Lockheed Martin (page 2) Cash and Cash Equivalents 2015 --- $1,090,000,000 US.
Raytheon (page 28) Cash and cash equivalents 2015 --- $2,328,000,000 US.
GKN (page 19) Cash and cash equivalents June 2016 --- £ 227,000,000.
Boeing (page 4) Cash and cash equivalents June 2016 --- $8,605,000,000 US.
Airbus (page 9) Cash and cash equivalents June 2016 --- € 7,965,000,000.

It appears that Airbus has the largest amount of cash on hand. What are the chances of them getting full corporate approval to spend 17% of their war chest and having all the financial items in order in a month to make a bid for Arcam. And be prepared to raise the stakes, if necessary. I'm not at all surprised that we haven't heard a counter bid yet.

For the record...
General Electric (page 7) Cash and marketable securities June 2016 --- $91,800,000,000 US.



Rolls-Royce, Honeywell, UTC (Pratt & Whitney), Lockheed Martin, Raytheon, GKN, Boeing, and Alcoa combined had about half the cash that GE had available.

The Alcoa Investor Presentation on October 6, 2016






There was no conference call. None was announced. It's a departure from the transparency with which we were accustomed. It's not legally required in Sweden. I haven't seen any information about any specifics of any of the 4th quarter sales.


The About Arcam page disappeared for several days during the offer but reappeared with no changes as far as I can tell.

About Arcam

WELCOME TO ARCAM´S INVESTOR RELATIONS INFORMATION!

Arcam strives to provide open and clear information to present and potential shareholders as well as other stakeholders and media.It is important for us that the information we give makes it possible to correctly understand the company´s present situation as well as its future potential.

Some documentation, like by-laws and protocols from general meetings are provided in Swedish only. Should you wish information beyond what is available on this site please do not hesitate to contact us.

We publish important information as well as press releases.

Arcam’s ambition is to communicate information internally and externally so that information about the company and its operations, as well as confidence in the company, is maintained. The information must be correct, relevant and well-formulated as well as adapted to the target groups, including shareholders, the capital market, media, employees, suppliers, customers, authorities and the public.

Arcam complies with the rules for disclosure of information established in the NASDAQ Stockholm regulations for issuers. The company makes public business events that the company considers to be critical and that may affect the price. Orders with a value exceeding MSEK 20 will always be made public.