08.06.2006

Ashtead drops with a bump

Ashtead, owner of Sunbelt rentals in the USA and A-Plant in the UK, and operator of one of the world’s largest powered access fleets, had a bumpy ride on the stock market yesterday.

Aegon Asset Management a long term investor in Ashtead sold around seven percent of the company’s shares at £1.75 each, well below the £1.91 opening price. The timing came as Ashtead Announced that its full year results will be published at the end of the month.

The results are likely to be well above original forecasts and showing the strong ongoing recovery from the dark days of 2003 when the business was in serious trouble.

The surprise move sent the shares down to £1.68 before recovering to £1.75.

This morning Goldman Sachs has said that it is looking to take its very minor holding up almost six percent thus replacing Aegon.

Vertikal Comment

Why did Aegon bail out?

In all likelihood.. purely to take what amounts to a fantastic profit on its holding, the timing is most likely co-incidental and suits Aegon’s needs rather than having anything to do with Ashtead’s timetables.

It is also quite likely related to the current low dollar boosting Aegon’s dollar profits, while threatening Ashtead’s future profits when they are converted back to Sterling.

As Goldman realises, Ashtead still looks to be a good long term bet.