The RPC (RPC) Conundrum

There is nothing like the M&A situation which goes to the wire, especially at a time when M&A activity is a shadow of its former self. For plastics packaging group RPC we should know whether the Eagle will land over the next 24 hours, in the form of private equity group Apollo stumping up around £3bn for the UK group. Perhaps the thing to keep in mind here is that it has been a somewhat tortuous journey to tomorrow’s January 23 deadline, which is a deal goes through would make it fifth time lucky after all the extensions. The risk is that the 850p a share that some have been looking for may be a little rich for Apollo, and so some may be disappointed.

At least from a charting perspective while the stock holds the 702p level of the 50 day moving average the main destination here should be of the order of 800p. Of course, given the way that this is a fundamental bet, such detail may not be relevant, Indeed, what could be more noteworthy is the idea that after a difficult gestation period the risk of disappointment is that much greater.

rpc

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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