oxiana top of self funding resources takeovers, page-4

horsetrader, it introduces complexity but I dont think it changes much; if a bidder came in at a price (say $6 a share), the board would need to determine whether it was in the best interests of shareholders to dilute the company at a ratio of 3.19:1 (ZFX shares would likely also fall on the news) or pull the bid ... note they can also make a decision to delay the scheme meeting to give them time to review the proposal.. directors risk a lawsuit from shareholders if they push through without proper review.. a bidder thus probably wouldn't low ball but try to lob a knockout bid - in cash - to get the board onside. Since Heggarty is moving on, I doubt management ego will get in the way. All in all I agree that if it is going to happen it will have to happen sooner rather than later. Everyone has been pitching that a bidder would wait for the scheme booklet, which was only distributed 6 days ago. If its going to happen I would say this week would be it.

(zfx shareholders would more likely vote yes to the scheme because oxr shares would be worth relatively more)