OOh!Media (OML AU): Don't Chase This Three-Way Tussle

• On the 29th April, oOh!Media (OML AU), Australia’s No.1 player in outdoor advertising, announced Pacific Equity Partners (PEP)’s A$1.40/share NBIO; then I Squared Capital (ISQ)’s May 11th A$1.45/share NBIO.

• Both indicative Offers were rejected, however suitors were afforded due diligence. After three weeks, OML announced PEP, ISQ and Oaktree have all pitched indicative Offers, some up to A$1.60/share.

• OML has now given all parties further due diligence up to six weeks to firm an Offer. Or Offers. OML has not indicated A$1.60 is a number it will support.

The Trade:

• In OOh!Media (OML AU): PEP’s Opportunistic Tilt, I was a buyer at A$1.20/share.

• At A$1.50/share as I type, I’m less pumped.

• Offers are indicative. Large downside if this breaks.

• If not in, I’d probably hold off until some pullback, if any.

This insight is labelled bullish as I’m still not bearish here.