creation of a new mid tier company, page-16

another thing to consider, NO company is going to make an offer at what the company is actually worth, they will only do it if they think it is significantly undervalued, the fact that existing shareholders get a stake in the new company (provided it's not going to be an asset strip) should mean that they benefit from any future gains (which the to parties coming into the deal must envisage).... If you bought on the takeover rumours in the hope of a quick gain, then you will have been sorely dissapointed... if like me you bought on turnaround potential, taking a long term view, then it isn't necessarily all bad.. I would have preffered seeing CSM going it alone, because who knows what additional expense this is going to bring to the mix, but if they manage to grow the business substantially we should hopefully win out.

The downside IMO is that we will only see 40% of the profits that the new entity makes compared to the current setup, so any growth has to be much higher, to get the same return we would have with a return to good profitability if CSM remained the way it was. That I think is the crappy part ;) I'll hold for now :)