Interesting article in today's Oz. States "The $2.6bn listed Stanmore Coal is understood to have bid for Daunia, and is known to be relatively conservative when it comes to acquisitions." I read this as the price tendered is really low - need to improve.
Also notes that BHP wants to sell both Daunia and Blackwater. And that Whitehaven is favoured bidder.
The comment - "Suitors for BHP’s Daunia and Blackwater coal mines are being asked to firm up their financing plans for an acquisition of the assets, expected to be offloaded for between $US3bn and $US6bn ($4.64bn-9.29bn) in the coming weeks." - is interesting. I read this as cash preferred, we don't do vendor finance or earn-outs
And looks like a decision is only a few (3-4?) weeks away.
As per some of my earlier missives, Bridget Carter is generally pretty close to the mark on M&A so I generally accept at face value what is being leaked (I mean reported). Looks like SMR is remaining disciplined. But does raise the question, what are they going to do with all the cash they are piling up......
Best
BSP
GLTAH, BAC, NFA, DYOR
SMR Price at posting:
$3.06 Sentiment: Buy Disclosure: Held
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