From my understanding of the rules applying to take-overs, CPB are not permitted to purchase shares on market above their offer price of 31c. So at present unless they can convince shareholders to sign over their shares they will not be adding to their overall holding. It seems pretty obvious a higher offer will need to surface if the takeover is not to die a slow death as it appears to be doing atm.
The ASX release regarding the conclusion to the sale of Pluton is timely. The company will be keeping the dividend trump up their sleeve to counter any higher offer which comes from CPB. Another $660,000 in the cash coffers will mean the potential to pay a generous dividend is there now......all good news for the people holding shares, but making life harder for those trying to buy in....
I also noted the ABARE forecast for coking coal pointing towards at least another 2 years of strong growth in export volumes. No wonder CPB is trying to grab it now.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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