When people discuss a takeover of CDU, I am reminded of Ivanhoe/Inova, which was taken over for $160m. It was a fully operational miner, and with some pretty interesting undeveloped assets. Was it sold at a bargain? Perhaps, but there were no counter-offers, so the market said it was about right-priced. Even with several capital injections, IVA struggled to make a profit. It has slumped to around 10c ($73 market cap) at its low, before it achieved the takeover offer of 22c. It left the bourse with no debt.
Why would anyone think CDU, as a developer with much debt, would achieve a takeover at a premium to today's share price? With extra shares and further debt to come, any suitor would be up for circa $500m with no premium yet attached. How likely would that be?
Add to My Watchlist
What is My Watchlist?