Running discussion on SP, page-3154

My understanding of takeovers

1. Off market - suitor will approach major shareholders 1st and make a offer to buy them out offmarket you would see substantial share holder notices changes. They hope to take a controlling stake or enough to force a seat on board. Advantages to having someone on the board before full offer comes in is there is no surprises. A forced board seat often is precursor to bigger offer.

2. Offer to MGMT - Suitor approaches board with a an prelim offer (usually low ball offer which is rejected 1st or 2nd time around) is announced to the market unless explicitly requested to be confidential (not sure on this ) . Board then anns they have received an offer with there recommendation to accepted of reject.

3. On Market Hostile - would do no 1 and perhaps 2 before making an on market offer a buy to hopefully suck up a majority stake to force the takeover. So the they put an undisclosed buy on queue and holders make a choice. If board thinks is to cheap they will recommend holders to not take it and hold out for something better. MGMT puts out a "flurry" of anns attempted to prove real value of company

4. Scheme of Arrangement - Stocks for stock offer sometimes with cash component. Have discussed this one prev.

There are probably more and I'll leave it to someone to fill in the bits Ive missed or got incorrect


PS: Usually if the company is "up for sale" it will have a data room available which can be accessed by potential suitors has all maps and results and everything about the company . Suitors are invited to review company in detail.

To my knowledge we don't have a data room...yet!