20 December 2014

Finblog

Paul Penrose - Finextra

307Posts 1,209,979Views 235Comments
A post relating to this item from Finextra:

Misys reports bullish Q3

18 March 2008  |  3942 views  |  0
In an upbeat interim statement, Misys is reporting healthy increases in third quarter revenue at its banking unit and treasury and capital markets division.

Misys gets reverse Midas touch

20 March 2008  |  4131 views  |  0

Misys boss Mike Lawrie and largest shareholder ValueAct Capital seemed to be onto a winner when they announced a deal earlier this week to spin off the company’s ailing healthcare business and merge it with rival Allscripts.

News of the deal – accompanied by an upbeat interim statement from the banking division – lifted Misys’ share price by 20% from 141.5 pence to 169.5 pence. This was not far off the 175p price point set on the placing of the 43 million new Misys shares which would be issued to help finance the merger and which would be underwritten by ValueAct.

By mid-day today, however, Misys’ share price had slipped back to 139.25p, perilously close to its year low of  135.25. The stock has not been helped by a broker note from Citigroup, which has re-rated Misys from ‘hold’ to ‘sell’ and reduced its target price to 130 pence. In the note, Citigroup said it sees the Allscripts-Misys deal as 13% dilutive to estimates for 2009 and six per cent dilutive for 2010 for shareholders in the UK company.

This is bad news for CEO Lawrie, who invested £500,000 in Misys’ shares on appointment at 198.75 pence a share, with a bonus match promised when the shares hit 225p.  

Lawrie continues to be bullish on the group’s prospects and insists that banking software sales are holding up despite the ongoing credit crisis.

He can’t afford any slip-ups in delivery. The next quarter could be critical to his fortunes and Misys' future as an independent company.

TagsRetail bankingWholesale banking

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Paul

ANZ and Visa lose the plot

30 June 2011  |  5772 views  |  0  |  Recommends 0 TagsMobile & onlineRetail banking

Don't give up the day job...ever

20 May 2010  |  5089 views  |  0  |  Recommends 0 TagsTrade executionWholesale bankingGroupWhatever...

Now we are ten

19 April 2010  |  5538 views  |  3  |  Recommends 0 TagsRetail bankingWholesale banking

Finextra's Best of the Web

05 March 2010  |  4995 views  |  1  |  Recommends 0 TagsRetail bankingWholesale banking

The ATM was the last great financial innovation

25 February 2010  |  8330 views  |  8  |  Recommends 0 TagsRetail bankingWholesale bankingGroupFinance 2.0

Paul's profile

job title Head of Research
location London
member since 2007
Summary profile See full profile »
I'm responsible for editorial content and quality control across the full range of Finextra media.

Paul's expertise

Who is commenting on Paul's posts