I take the Kerry Packer view.....if the mug is willing to pay over the odds for something then you let him have it. In this case the price offered by ADM was so great that only a fool would have rejected it. I don't care where the money was coming from if they were paying that much. It will take 10 years for GNC to get back to that price.
Having accepted it I think we (Australians) should then have gone around supporting new investment in the industry, such as is being done at Newcastle to really shaft the buggers...
Now we are stuck with the prospect of no investment and a company needing to raise prices and returns to justify the price that was rejected in order to appease shareholders......not a good outcome for Australia.
I think in the end ADM will get the company anyway...they will probably creep to 24.9% and put 2 directors on the board and have defacto influence anyway....coupled with other shareholders the foreign ownership will probably be over 50% anyway....but I guess some will feel good that we saw off the foreign invaders when infact they have a big influence anyway.
Just not me as a shareholder...
GNC Price at posting:
$8.75 Sentiment: Hold Disclosure: Held
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