share price will plunge if takeover succeeds, page-6

walliska

the share swap isn't going to succeed.

so at some stage FAS will have to get serious and make a cash offer - the longer FAS delays it the better as GWR's share price, moving in opposite direction to FAS's, will also be helped by

1. imminent iron ore price rise (40%)

2. Resource upgrade.

And given the offer will have to be at least 1.5 x GWR's prevailing share price.

that's a big debt for FAS to take on board - unless you're
saying that FAS has $300 mill sitting in cash even though its market cap is $16 mill?