Ghetto23,
I would have agreed with you if it was a straight non-binding offer. What is intriguing me is the fact that Ruane stake is being bought a few days before.
Obviously the company offering the TO is not named, however, given it is 12 hours between those announcements, the offer price is the same, I am speculating they could be the same party. I am presuming the sale of shares will go through of Ruane's 16.5%. That would mean the bidder has already committed a sizable amount of money so one could infer they are "committed"
So I am not sure how this will play out. If you go and commit to 16.5% why would you then put a non-binding TO in place if you just wanted a reasonable stake.
What was also interesting was a condition of the sale was that Ruane voted against the 249D proposals for the removal of directors.
Interested in the opinion of others on this.. I am trying to understand what is the underlying play here?
Do your own research, Not investment advice. I am guessing like everyone else here.
EAR Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
