Yes, it looks like the MiningNews.net insider resources journalists have heard what is going on, and that the business is effectively up for sale. Over the years, I've always found them to be very well informed.
So the questions remains, will anybody bid for FFX?
Will they get multiple bids?
If they only receive one low-ball opportunistic bid, will they sell?
I'd expect that Fraser & Gordon, via their fund and investment business, would also probably not stick around if they cannot sell FFX, because they have their own full-time business to run, and FFX is not their priority.
I wonder if they'll be able to attract anyone to apply for the CEO position, knowing that the business is up for sale?
Well, here is the thing that international hedge funds are good at, buying a distressed business and then selling off the parts. I'd expect that they are running over the figures, and may put in a low-ball opportunistic offer in the belief that FFX may be a distressed business, and if successful, they would then take the LLL shares for themselves and their clients, and then try and sell the Morila gold business. They might be able within a short period of time, to reap the LLL shares for themselves for effectively very little, or nothing at all. This is how hedge funds operate, though I'd expect it would depend on how easily they believe they could on-sell the gold business.
The other option, might be a Chinese entity coming in. I note that on the ASX this morning, one (1) Chinese entity bought into five (5) ASX mining businesses, taking over 5% in each. I wonder if the same Chinese company might also be looking at FFX.
I'm just thinking out loud here, as I type.
Lots of questions still to answer.
Gw
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