The THG board have cut off discussions with Apollo, sorry shareholders you are now having to be in it for the long slog, but don’t worry other bidders could still be around.
As if by magic, within hours of yesterday afternoon’s article being published, we have a statement today from THG (LON:THG).
The beauty and nutrition internet retailer has announced that it was not seeking an extension to the discussions with Apollo Global Management and it has now terminated all discussions with the potential bidder.
Does that mean that Apollo Global Management, the US-based fund manager, has walked away?
I would think not, as yet, because it obviously did have some concrete plans for the future progress of THG, so it would not, in my opinion, have just upped its THG sticks and just walked away.
Apollo made an indicative proposal, which was THG considered to be on an ‘inadequate valuation’.
So, what will it do now?
We now know, from THG’s own lips, that the company has had several publicly and other private offers for the company.
It has rejected those upon similar grounds to its rejection of the Apollo approach.
I do not think that Apollo will walk away, nor will any of the other potential suitors.
They all have irons in what could prove to be a very hot fire.
The question is who will move first?
I bet the weekend press will commit column inches by the score to discussing the whole situation.
So THG could still be considered to be in play.
The shares fell to a 55p low this morning before quickly bouncing back to 67p.
Are they going to gain further ground?
Without any doubt my answer is that they will be recovering very soon.