seven's debt move is the key here that most have ignored.
Let's assume first "opportunistic" equity offer is ~$1-1.5bn initial offer (60c - 90c p/s price range) costing them a total of ~$1.6-2.2bn with the USD $400m bonds (~$600m AUD).
BUT, the ~$600m AUD bonds are worth ~$420m on market! Wouldn't you buy as many as you can, saving yourself up to $180m AUD BEFORE you pull the trigger on the full takeover.....?? hence you get a discount on the overall purchase! the debt savings would dwarf the transaction costs of the deal!
gut tells me Sev.en is in private talks with EMG (or will be) to strike a deal for their 51%. Given EMG havent come to our rescue this time in any form, their holdings would provide a 51% springboard and give them control automatically.....the other dominos (us) would fall in line easily after that....
its brewing - i can feel it....dyor
CRN Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
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