Keppel has not met the pre-conditions for Temasek offer.
Temasek can now walk away from the offer and offer a lower bid, or forget the whole exercise as a waste of time and wait for Keppel price to tumble even more, before making another offer.
Yet, I believe Market might just do the reverse, and the reasons for this are as follow:
1) Keppel underlying profits are surprising resilent excluding the one-off impairments
2) The worst in terms of supply side shock is over. Remember, come 7 August, it is believed that workers can start returning to the yards, and Keppel has enough orders to keep the yards busy. Keppel has 24K workers, and currently only 5 K is working
3) While I believe Covid 19 is going to get worse, I believed there will not be a second lock-down. There will be some tightening of safe-distancing measures or crowd control measures, but unlikely we will see a schronised lockdown again.