The MLD Board will roll out the "certainty of value" argument for rejecting the (hopefully initial) NRW bid. Its not clear at this stage whether all shareholders would have been able to select the 100% cash option and since the other options have exposure to the NRW shareprice, the MLD directors will say that the true value of the NRW proposal is unknown.
So hopefully one of three things happens now:
1. NRW makes it clear that all shareholders are able to accept the $1.085 / share offer in cash. If this happens, MLD Directors have no option but to recommend that NRW offer as it's superior.
2. NRW clarifies that not all shareholders can elect to receive 100% cash, but lifts its offer sufficiently so that there's a high likelihood that all shareholders will realise value in excess of the Theiss offer.
3. Theiss revises its offer to north of $1.085 and confirms that in all other respects, the terms of the offer as as per the current one. This may shut down what is now going to be a messy process with shareholders reluctant to accept the initial offer.
No one should be selling at the moment. Worst case you'll get $1.025/share (of which 2.5c may be a franked dividend, so its closer to $1.035). Best case Theiss and NRW will commence a bidding war and we'll get a price that's likely to be at least $1.085/share.
MLD Price at posting:
$1.01 Sentiment: Hold Disclosure: Held
