Q: Rumours of a takeover bid by a US private equity firm. If bought what do you think would be a takeover price for CAE based on their market
capitalization and moat.
capitalization and moat.
5i Research Answer:
At the moment it is just a rumour as reported in a newsletter. However, considering that it has had volatile earnings (and hence a volatile valuation) and a duopolistic industry, we do think it makes sense for it to be private, at the right price. We would be surprised if management would be willing to discuss anything below $50.00.