Why investors shouldn't get too excited about Goodpack's possible bid

It could fizzle just like in 2008.

Newswires report that major PE firms Blackstone Group and Carlyle Group are considering a bid for Goodpack Limited, reports OCBC Investment Research, but it warned investors not to jump on the stock for now citing that there has been no official confirmation to the rumors.

While it is true that Goodpack re-iterated in an SGX announcement that it has been approached
by parties in connection with a possible transaction and discussions are on-going, OCBC notes that this is not the first time Goodpack was suited.

A similar possible bid was looming back in 2008 from Brambles and packaging company Loscam Ltd but the transaction never went through.

As such, OCBC maintained its HOLD rating with fair value estimate of S$2.17.