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London Bridge Software - Agrees 95p cash offer; gain 280%

May 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

London Bridge has received a cash bid from NASDAQ-listed  company Fair Isaac.  Fair Isaac is paying £166.2m for the group - 95p a share cash - a 280% premium to our NAP tip at 25p in the Jan'03 issue and 40% over the 68p buy tip in the the recent February issue. The offer equates to 2.8x historic sales although London Bridge does have £22.2m cash.With the backing of the directors, who account for 79m shares, Fair Isaacs already has acceptances of 46.2%.  London Bridge could quite possibly  have been able to release value on its own - to higher levels - but it would have taken time. Happily, accept the offer. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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