takeover confirmed smh & fin, page-19

Is it my opinion that a company buying another company normally pays a premium for the purchase? I didn't see that as an opinion. It is the way the world works, factually, isn't it?

I'm not giving an opinion that $13 is the right price. I'm simply pointing out that if Sinochem dropped the merger, and shares fell to $8.50, that this would not imply an opportunity to buy the whole company at $8.50.

So the perspective on what is fair value for a trader buying the shares to buy and hold for a few months is not the same as the perspective of a company looking to make a 10 year strategic investment. And even if they could buy them cheaper by dropping the merger, unlikely Sinochem wants to mount a hostile takeover on an Australian company in the current political environment in order to shave a dollar off the purchase price.

If someone wants to take the position that $13 is a bad price to pay for Nufarm based on its performance over the next 10 years, and that the financial burden of financing that purchase will not be offset by business opportunities it creates for Sinochem, they are welcome to that opinion too. But that would require a pretty well developed argument, and no one presented such an argument.