Hmmm......interesting but not great to read that MEP announcement. We can see what Holzberger is busy with!
My own take would be that the resource is the resource, and the IP is the IP, both really quite seperate things. MEP evidently don't see it that way. I guess that NN is the sticking point, but it may just be HPA, concrete etc. It would surprise me if MEP are making a big deal over concrete etc, that seems strange to me.
Of course I do not have the facts, and my opinion is not really important. What is important is that this is resolved.
For an announcement like that to be written, there has evidently been an awful lot of infighting and arguing over this, and that is always a shame. What has been behind closed doors is being brought into the public arena.
I can see why someone may have a retail spread position gamble over this, but an institutional one? In what has been such a thin mkt? On such a grey area as dividing up the pie? I see that as less likely, but hey ho, that's mkts for you. If I had done it, the spread was worth doing at the ADN high and then buying MEP lower down against it, but selling ADN in the teens and taking MEP against it now, I can't see that. There could be some spread unwinding to be done here, as there's some sort of arrangement going to be made between the companies, so I would expect some ADN strength. As it stands, both prices are higher, so that shoots my theory down....
It would seem that MEP will reverse out, but who knows.
Lets hope that all is well that ends well.
ADN Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
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