What is Clive Palmer going to get out of CTP if his nominees are elected ? As far as I can see, the way things are now, he is getting nothing. If his new board negotiate a good JV partnership, his shares should increase in value but would he be happy with that ? I don't think so.It would be peanuts to him. No, I think he is looking at making the real money by taking over CTP. and its assets. How can he do that ? He could make an offer to the shareholders to buy their shares for say 15 or 20 cents each and would probably end up controlling or owning the company. But then someone else with deeper pockets could also be interested and it could end up in a bidding war and he might miss out.
Or an alternative, and probably a far cheaper way for him, might be to put his own directors on the board and do some deals with them to buy all of the main assets at a favourable price He could strip the company very quickly. What can we do to prevent that happening ?
Hopefully someone can put my mind at ease and convince me that it will never happen should his nomminees be elected.
CTP Price at posting:
43.5¢ Sentiment: Hold Disclosure: Held
