Hi Ralphi
A good summary...what I am now contemplating is that the brokers/banks negotiate a higher scrip offer option, which of course they would accept gladly. There might be a small increase in the AUDcash component, but at the end of the day I expect even without that, they will easily get the 50% shareholder number acceptance . The key was the broker/banks for getting to 75% of total eligible shares.
I am reasoning that the higher scrip option possibility has been a factor keeping the TLW price under pressure in UK market. Perhaps this has been orchestrated by the banks (through leaks), in order to give their proposition more likelihood of success through its impact on TLW price during the bid (ie. more dilution possibility keeps price down).
I have to admit my theory is an outcome I would like, as I firmly believe that once the bid is decided in the affirmative TLW's price will rise. TLW has also been well advised IMHO, and I believe they had this option in their mind to sweeten the deal right from the start. The scrip alternative could leave them with success and no additional debt requirement, or a nominal one.
Just some speculation on my part.
regards
DF
HDR
hardman resources limited
