The current situation would not have come about if the former NWE BOD had not reversed their recommendation to NWE shareholders within a very short period of time.
In the original REJECT THE OFFER document they listed 6 reasons why shareholders should just say NO.
On a re-read just now those 6 reasons are still valid, still hold and even more so as evidenced by recent events:
1. Inappropriate valuation of Norwest's Pert Basin assets
2. Opportunistic move by MinRes by refusing to pay an approprriate premium for control
3. By accepting the offer NWE shareholders are reducing their exposure to the Lockyer project and exchanging that for exposure to MinRes' other businesses and commodities
4, Retaining NWE shares would provide existing nNWE shareholders with greater exposure to the already established Perth Basin gas economics
5. A superior offer could have eventuated; therefore Hold
6 .Scrip-for-Scrip rollover relief could have come into play
Honestly, what's changed.
A few days later the then NWE BOD did a complete 180 degrees.
Not long after that these same people exercised their NWE Options with no other intention but taking their somewhat dubious, re-imagined advice and trousering several million dollars as part of their arrangement with Mineral Resources.
At no time, post the initial face-saving REJECTION NOTICE, did they protect/advance the best interests of NWE shareholders ...other than themselves.
It's a scandal of some proportion which will see the light of day.
NWE Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
