Austal (ASB AU) hasn’t always seen eye to eye with Hanwha. An (any?) alternative bidder for the US ops is preferable. I’m not sure Wildcat Infrastructure is the best bet.
Zero shipbuilding track record, a defense division that’s months old, and a NBIO contingent on due diligence. Plus unknown funding. It’s no wonder Hanwha’s DD has been extended.
Wildcat’s pitch is political. And the Pentagon has reportedly been stalling talks with Hanwha. Yet, CFIUS previously indicated it had no unresolved national-security concerns regarding Hanwha taking 100% in Austal.
The Trade:
Hanwha is the Real McCoy. This is known.
Wildcat’s Offer, if somehow firmed, must be at or above Hanwha’s terms, to be considered superior.
Unless you think Hanwha’s bid gets politically dinged AND Wildcat slinks away, Austal is a buy here.
This insight is labelled bullish as I’m not bearish here.